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BDIP15 (Formal vote): Defer rewards on BSD/Stable pools until BSD > $1

Voting ended about 5 years agoSucceeded

Chungus on Telegram contributed significantly to this proposal design.

Background: At present, BSD/stable pools continue to emit BSDS, even while BSD < $1. This emission creates downwards pressure on BSD, while not helping incentivize movement of BSD to $1.

Proposal: Align interest of BSD/stable farmers with the overall ecosystem's objective of pegging BSD at $1. To do this, we propose: (1) Pause all emissions of BSDS rewards to BSD/stable pools while BSD < $1. (2) These paused emissions continue to accrue, that is, they will be paid out at a future date when BSD > $1.

For example, we can take block-by-block snapshots of addresses owning LP tokens in the BSD/stable pools. This will allow distribution of accrued BSDS at a later date (similar to the model adopted by Balancer).

Advantages:

  1. Reduce downward pressure on BSDS.
  2. No loss of BSDS by BSD/stable farmers. They are just accruing for later distribution.
  3. Aligns BSD/stable farmers with the ecosystem: Everyone gets rewarded when BSD > $1.
  4. Potentially, some BSD/stable farmers may cease LPing due to deferred rewards emissions, which means that there may be less resistance (or costs) in moving BSD towards $1.

Disadvantages:

  1. BSD/stable farmers' rewards are temporarily locked up. However, this is no different than the vesting in Sushiswap, Luaswap, and other projects.

Off-Chain Vote

YES: Defer rewards until BSD >$1
702.78 69.6%
NO: Keep system as-is
306.75 30.4%
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Timeline

Jan 18, 2021Proposal created
Jan 18, 2021Proposal vote started
Jan 20, 2021Proposal vote ended
Oct 26, 2023Proposal updated