Implementing vote locking for fBEETS

We propose to implement vote locking for fBEETS.

The fBEETS locking has been discussed extensively on discord. Here is a link to a recent AMA we had and the associated slides https://discordapp.com/channels/885764705526882335/886065257255153664/953765755474808912

Key points are:

• The locking period is measured in epochs, where 1 epoch = 1 week
• The lock duration of 12 epochs (12 weeks)
• The start of an epoch is always at the same day and time of the week
• Newly locked fBEETS will only be able to vote from the start of the next epoch
• Relocked fBEETS get the benefits immediately
• fBEETS are only unlocked at the end of the 12 epochs
• Only locked fBEETS will be eligible for voting

Rewards Current model

• 100% of all fBEETS emissions go to the fBEETS farm
• 30% of the protocol fees goes to fBEETS holders

Future model

• 50% of fBEETS emissions will go to all fBEETS holders, regardless whether locked or not
• 50% of fBEETS emissions will only go to lockers
• 30% of the protocol fees will only go to lockers

Implementation requirement The implementation of the locking contract means that the emissions will be released over the course of an epoch (week). To ensure that the correct rewards get distributed, the locking contract needs to be frontloaded with the emissions for the upcoming epoch. As the masterchef can only mint on a per block basis it is not able to frontload the contract while keeping emissions to the current fBEETS farm. In order to manage the change over, we would like to borrow the first epoch (week’s) emissions from the treasury. This amounts to approximately 105k BEETS and it can only be repaid once we reach the end of the emission schedule.

Pro

• Align interest of long term share holders of the protocol;
• Reduce gaming of the voting system;
• Likely Increase incentives for fBEETS lockers;

Con

• Locking may impact partner protocols to integrate fBEETS;
• The synchronous unlocking time for each epoch might cause short term price instability of BEETS.

For more discussions, please go to our discord at https://discord.gg/beethovenx and discuss in the dedicated channel for BIP.