BIP-77: Botto's Bedrock - Establishing Permanent Protocol-Owned Liquidity

Summary

This BIP proposes the creation of Botto’s Bedrock: a permanently locked layer of protocol-owned liquidity (POL) on Ethereum mainnet via Uniswap V3 and UNCX’s V3 Liquidity Locker. This would establish an unchangeable foundation for Botto’s on-chain liquidity, reinforcing stability and enabling autonomous fee accrual to a Botto-controlled wallet or AI agent.

• Objective: Establish a decentralized, immutable base layer of liquidity to support long-term protocol sustainability and progressive decentralization.
• Strategic Benefits: Strengthens protocol stability, generates self-sustaining revenue, and reinforces the narrative of Botto as an organic and evolving artistic entity.

Specifications

The following options are presented for a ranked choice vote regarding the establishment of Botto’s Bedrock:

1. Permanent Lock

20% of current POL on Ethereum mainnet (equivalent to 3,448 LP tokens as of 3/2/25) will be locked eternally via UNCX’s V3 Locker.

Uses a full-range Uniswap V3 position with a 1% fee tier, designed to incentivize active LPs to provide concentrated liquidity around the bedrock.

Liquidity fees will be automatically accrued to a Botto-controlled wallet or AI agent; any future changes would require DAO approval.

Forms a permanent and verifiable foundation layer of on-chain liquidity and opens the door for expanding this structure in the future based on performance and reception.

2. Five Year Lock

Same setup as above, except liquidity is locked for five years.

Balances long-term stability with limited future flexibility to adapt to new developments in decentralized exchanges or protocol needs.

3. Ten Year Lock

Same setup as above, except liquidity is locked for ten years.

Offers a more extended commitment than the five-year option while still not being fully permanent.

4. No Bedrock Layer

Retain existing POL management as currently structured under BIPs 68 and 69.

Maintain full flexibility without adding a permanent or time-locked liquidity foundation at this time.

Note that if the permanent lock voting option for the proposed bedrock layer is approved, BIP-77 will supersede the one year time locks previously approved in BIPs 68 and 69 and which have not been implemented yet, in the interest of operational simplicity. BIPs 68 and 69 will however still be implemented if the alternative voting options for BIP-77 are favored.

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The above options are presented as a ranked choice vote, allowing governors to prioritize their preferences. If no option secures over 50% of the vote initially, the lowest-ranked option will be eliminated and its votes redistributed until one option surpasses the majority threshold.

Please refer to the BIP-77 forum post for full details and discussion.