Proposal: Proposal: Remove 30m BNT Auto Compounding Rewards

This proposal is expected to appear on Snapshot on Sunday, July 3.

FOR: The 30m BNT allocated to auto compounding rewards will be canceled. AGAINST: The 30m BNT auto compounding rewards program will be created.

I propose the removal of the planned 30m BNT auto compounding rewards.

I fully understand that many will not be a fan of this, but I ask you to hear me out. Giving ourselves these rewards will have bad consequences.

We just witnessed firsthand the result of excessive liquidity mining rewards. Bancor nearly crumbled under the pressure of mass BNT-rewards selling & subsequent withdrawals.

This is the absolute last moment we need the auto compounding program. The result of this program would be trading a high ‘APR’ in the UI for a reduced price of BNT. Understand that this APR is not real, it is simply diluting ourselves and the value of BNT. If we did this, we would be putting additional strain on the Bancor Protocol as the price of BNT goes down - increasing the impermanent loss in every pool.

It’s time to completely remove unhealthy liquidity mining rewards. It’s time for Bancor to heal.