BIP-15: Restructure Revenue Design Across Chains and Adjust Product Revenue Weights and Locations

If passed, (1) single-staking revenue on chains other than Base, will be directed to Base. This means BMX will only have single-staking live on Base. Additionally, (2) BMX native liquidity will only be protocol incentivized on Base. This means for products deployed on chains other than Base, any revenue currently or in the future, directed to native incentives will be forwarded to Base and distributed. (3) Adjustments to product revenue weights as described below.

After observation and consideration, the following changes are proposed to enhance capital efficiency for the protocol and users:

(1) Single-staking revenue on chains other than Base, will be directed to Base. This means BMX will only have single-staking live on Base. Mode single-staking would be deprecated and current single-stakers would lose all multiplier points on Mode, as they are non-transferrable to Base.

(2) Native liquidity will only be protocol-incentivized on Base. This means for products deployed on chains other than Base, any revenue currently or in the future, directed to native incentives will be forwarded to Base and distributed. This does not mean BMX will not have native liquidity on other chains, but rather the protocol will only incentivize one pool which is wBLT-BMX on Base. Spreading incentives across chains fractions native liquidity and often demands the protocol acquire voting tokens of that chain's AMM (e.g. Velodrome). BMX already has a significant veAERO position and acquiring additional AMM tokens fractions voting support for native incentives. External native incentive supports are available on other chains, such as regular swap trading fees from the AMMs, grants when available, and community voting support. This only applies to native liquidity incentives including BMX in the pair, not pairs like wMLT-USDC or the equivalent on another chain.

At the moment, products do not direct protocol revenue to wBLT-BMX or wMLT-BMX in response to the Aerodrome/Velodrome guidelines changes disallowing bribing for non-connector token pairs. However, as we continue to transition in response to this change, we have observed the strength of wBLT-USDC and wMLT-USDC with regard to fee generation being able to sufficiently incentivize liquidity for these pools. Often, wBLT-USDC generates 5-8x the fees wBLT-BMX or wMLT-BMX generates. As part of this transition process back to our fundamentals, we have slowly reduced the wBLT-USDC and wMLT-USDC revenue distribution percentages.

(3) As part of this proposal, it is recommended to return to native liquidity incentives now that wBLT-USDC and wMLT-USDC are evidently self-sustaining. Revenue will stream directly to wBLT-BMX LPs via our native vault.

The following changes are proposed:

CURRENTLY:

Revenue Distribution Weights and Locations by Product Chain isolated, not aggregated

Classic:

• 65% to BMX Classic’s liquidity token holders (e.g. BLT/MLT)
• 15% to liquidity incentives (e.g. voting incentives) for wBLT-USDC and wMLT-USDC
• 20% to BMX single-staking (Base/Mode)

Freestyle:

• 25% to liquidity incentives (e.g. voting incentives) for wBLT-USDC and wMLT-USDC
• 35% to BMX Classic’s liquidity token (e.g. BLT/MLT)
• 30% to BMX single-staking (Base/Mode)
• 10% to acquiring BMX on-market and burning it

Based MediaX (not live on Mode):

• 60% to BMX single-staking (Base)
• 10% to liquidity incentives (e.g. voting incentives) for wBLT-USDC
• 25% to BMX Classic's liquidity token holder (BLT)
• 5% to acquiring BMX on-market and burning it

IF PASSED, THEN NEW:

Revenue Distribution Weights and Locations by Product

Classic:

• 70% to BMX Classic’s liquidity token holders (e.g. BLT/MLT)
• 10% to native liquidity incentives wBLT-BMX (all chains revenue directed to Base)
• 20% to BMX single-staking (all chains revenue directed to Base)

Freestyle:

• 20% to native liquidity incentives wBLT-BMX (all chains revenue directed to Base)
• 40% to BMX Classic’s liquidity token (e.g. BLT/MLT)
• 30% to BMX single-staking (all chains revenue directed to Base)
• 10% to acquiring BMX on-market and burning it

Based MediaX:

• 60% to BMX single-staking (Base)
• 10% to native liquidity incentives for wBLT-BMX
• 25% to BMX Classic's liquidity token holder (BLT)
• 5% to acquiring BMX on-market and burning it