BDOIP07 - BDO v2 Improvement Proposal #7 (Addition of a Transaction Fee Mechanism when BDO v2 is under-peg)

Motivation:

The main benefit of having our new and improved BDO v2 is the flexability to add mechanisms in order to facilitate it go back to peg, one of which is to have a small transaction Fee whenever BDO v2 goes under its TWAP target.

Proposal:

We would like to propose a Transaction Fee (Tax) mechanism for whenever BDO goes under-peg and help it go back to peg, through burning this collected amount.

• The Max amount of the Transaction Fee % will be charged (to burn) if BDO price is under $0.50;
• No Fee is charged when BDO price is over $0.95;
• Txn Fee to charge when BDO price is in range of [$0.5, $0.95]:
• Txn Fee = T * (0.95 - price) / 0.45

For example: T = 2%, price = $0.70: tax = 1.11% T = 2%, price = $0.85: tax = 0.44%

Voting procedure:

We propose the community vote FOR, and all the qualified voters are sBDO BLPs at sBDO/BUSD Pool (BDEX farm, sBDO farming pool, and/or bVaults) and Boardroom's stakers.

• Voting closes on Mon May 17 2021 21:30:00 UTC
• Snapshot at block 7500000

Options to vote:

A. No change (T = 0%) B. T = 0.5% C. T = 1.0% D. T = 2.0% E. T = 3.0% F. T = 4.0% G. T = 5.0%

Implementation:

The final Weighted Average value of T will be used; however, if option A voted most (>50%) we consider it is No Change.