This proposal is expected to appear on Snapshot for voting on [date=2021-10-17 time=13:00:00 timezone="Europe/Lisbon"]. Make sure to stake your vBNT for voting before this date and time to participate in the DAO decision.

To pass, this proposal requires 35% quorum and 66.7% supermajority.

TLDR

• The Vortex Burner rate was increased to 10% in the beginning of June [1], 4 months ago.
• Initial Vortex Burner rate schedule specified periodic incremental increases of 5% every 6 months [2].
• Bancor's average APR wouldn't decrease significantly with this change.
• The benefit to increasing the Vortex Burner rate is clear - increase the speed at which BNT liquidity is locked in the protocol forever. The projected vBNT burnt at 15% justifies the early increase.

Discussion

Average APRs

The impact of changing the vBNT rate from 10% to 15% on the average APR for an LP can be assessed by analysing the APRs of the bigger pools in Bancor. The weekly average APRs for 89% of the TVL were accounted for, with the total average APR changing from 7.74%+-0.85% to 7.275%+-0.803%

Figure 1 - Analysis of the Vortex Burner rate impact on the weekly average APRs for the major pools.

Projected vBNT burnt

Accumulated vBNT burnt has followed a linear pattern with an R^2 of 0.9966

Assuming this linear pattern is maintained until the end of the year - when the vortex burner rate would have been increased to 15% as per the original Vortex Burner proposal [2] - 1.98m vBNT would have been burnt by then.

Increasing the rate to 15% from the 21st of October and assuming that the vBNT/BNT ratio remains constant would mean that, by the end of the year, 2.82m vBNT would have been burnt by then. This represents a 834k difference in burnt vBNT, or roughly $1.08m (with vBNT at $1.290).