BIP #34: Create $BEND Sink

Background

According to the rules of community governance:

Phase 1: Idea Minimum number of supports: Pass (14 check marks) Discord Idea: https://discord.com/channels/897709643948761148/1116483070502125619

Phase 2: BIP Minimum number of voters: Pass (11 out of 12) BIP#33: https://governance.benddao.xyz/t/creating-bend-sink/483

Phase 3: On-chain voting Voting Quorum: Approximately 45.7M veBEND (10% of the total supply) Pass Rate: Need over 80% Approve The voting will last for7 days.

Summary

In order to create a positive feedback loop between $ape staking and the $bend token I propose we take 20% of BendDAO's pairing fee revenues from $ape staking and use them to buy and burn $bend. This will create a sink and steady buying pressure for the $bend token and create a way for the success of $ape staking to drive economics back to $bend token. As we will eventually be rewarding individuals staking $ape on the platform with $bend, this should create a virtuous feedback loop ($BEND price goes higher, more profitable to stake on BendDAO, more people stake on BendDAO, more $BEND gets burned, $BEND goes higher). 20% of fee income is also a nice round number that doesn't require "betting the farm".

V1 Staking Estimated Buy Pressure: -257 BAYC (2.6m $APE equivalent), 343 MAYC (0.7m $APE equivalent), 61 BAKC, and 3.3M $APE -BAYC @ 75% APY = 6.25% per month * 4 % BendDAO Fee * 20% Going to Burn = 0.005% of the value of the $APE paired per month will go to buying and burning $BEND = ~$3k of monthly buy pressure at current levels -MAYC takes burn to ~$3.6k and BAKC addition is neglible -This may seem negligible but if $APE prices and or staking on the platform increases then this could grow 10x+

V2 Staking Estimated Buy Pressure: -111 BAYC (1.1M $APE equivalent), 149 MAYC (0.2M $APE equivalent), 85 BAKC, and 3.2M $APE -1.3M $APE staked against BAYC/MAYC in pool and 1.9M $APE staked standalone -Generates ~$1.6k of monthly buy pressure at current levels from BAYC/MAYC and ~$1.1K from the remaining non-paired $APE for a total of ~$2.7K per month

Combining V1 and V2 buy pressure together yields an estimated monthly buy pressure of $6.3K or about 1.4M $BEND at today's prices and platform usage. If $APE goes up, then this buys more $BEND.. if more people stake on BendDAO, then this buys more $BEND... and if $BEND does down, then this buys more $BEND. My gut says this doesn't do much immediately, but it gets a flywheel going that could be meaningful overtime without requiring the team/DAO to take much risk or energy to implement.