[BPD:05] Profit Distribution - Week 5

Background

Following the passage of [BIP:81], the DAO has been experimenting with a trial for distributing its Q2 2024 profits through user incentives. Part of the proposal suggests the implementation of holder-directed incentives, where holders of the $BIFI token vote on a regular basis to determine how all or some of the user incentives should be allocated amongst Beefy's different products.

For the remainder of the trial, we will operate weekly votes to allow holders to give input to the allocation of user incentives, and to feed back on this potential mechanism. We will alter the parameters of the vote each week, so that holders, users and contributors alike can evaluate the suitability of different models for holder-directed user incentives. The core team is keen to receive feedback and suggestions from all stakeholders on the trial mechanisms in the #-profit-distribution channel on Discord.

Week 5

For the fifth and final week, we are proposing a further adjusted scope for this vote. The core difference is moving from a system of weighted votes to an equal allocation of the total value, spread across the 10 products with the highest vote share.

The parameters for this week are:

• Multi-choice voting
• 70% distributed by holder votes, 30% by core
• Top 10 products receiving the most votes in this proposal are eligible for rewards, and will receive an equal 10% of the total pot available for holder votes
• Any products on any chains save Ethereum Mainnet
• As many vote options as are requested, or otherwise up to the limit of Snapshot's capacity
• Incentives to be paid out in $mooBIFI where possible, and stablecoins otherwise
• No CLM Reward Pools to be incentivized where there is also a CLM Vault of the same pool *An abstain option to allow voters to demonstrate attendance without needing to use their entire voting power

To give feedback on the profit distribution trial and feed into discussions about a permanent program, please go to the #-profit-distribution channel on Discord to put in your requests.

This vote closes at Midnight UTC at the end of Tuesday 3rd December, with incentives going live on Thursday 5th December for one week.

Recommendations

Having surveyed the available and requested options, the core contributor team recommends the following choices for key product categories:

• Stablecoin Product - curve-lend-fraxtal-sfrax-crvusd
• Bluechip Product - uniswap-cow-poly-wbtc-weth-rp
• ETH-correlated Product - aerodrome-weth-mseth
• BTC-correlated Product - curve-op-tbtc
• Best Protocol Revenue-generating Opportunity - aerodrome-weth-ox

Proposal

Beefy should allocate profits for the next week to the following products:

(To view the options on the Beefy app, insert the above ProductID into the following link to visit the corresponding product page: https://app.beefy.com/vault/{ProductID})