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Banksy DAOBanksy DAOby0x58F42854c5F1eED772d2166b94ab57BE121B19530x58F4…1953

Proposal to modify emissions mechanics of walls

Voting ended about 4 years agoSucceeded

The issue that seems to be occurring & in my opinion, also one that is easily solved by this proposal, is concerned with the dramatic price fluctuation/drop as soon as a wall has reached completion and subsequently funds (BANKSY tokens) are unlocked & made available to withdraw. Users withdraw their BANKSY and sell it as quickly as possible all at once; with so little liquidity, they are only concerned with the DAI reward (or other coin chosen for a wall) and not any of the others earnings (NFT exp for example). They are not interested in holding their BANKSY or even putting their tokens into a vault or farm/pool due to fears of further price fluctuation - and indeed, the price does fall very rapidly from the time when BANKSY tokens are being held/locked in the Wall contract, immediately after they are available to be withdrawn and then sold.

To solve this I propose a mechanism of some kid that would stagger these tokens being unlocked, so that they are made available to withdraw in percentage of total locked funds intervals. This could be based on the timing that an individual has joined/deposited their tokens to the wall contract, as one example. I think more simply taking an approach of emissions, similar to how rewards are being unlocked, would work well.

Another idea could be modifying reward payouts in such a way that longer lockups are incentivized by higher payout ratios by comparison with shorter lockups in the wall contract. At any rate, I feel something should be done to limit this massive sell off that occurs all at once. A vesting period, wherein funds are automatically staked for example, or even lock-staked for a shorter time in one of the vaults... This is all just brainstorming.

The proposal can be simply stated: Should we take this kind of approach & does the community want to be proactive in this manner to prevent the rampant dumping of tokens after wall events, thus the price drops: Yes or No?

I feel it would be up to the dev(s) to work out the actual mechanics if the proposal succeeds, but I offer my ideas here, if any of them should be agreeable and doable.

Off-Chain Vote

For
5 100%
Against
0 0%
Abstain
0 0%
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Timeline

Jan 30, 2022Proposal created
Jan 31, 2022Proposal vote started
Feb 04, 2022Proposal vote ended
Oct 26, 2023Proposal updated