BIP-53: Adjusting LP Staking VP

Summary

Please note that this Snapshot has a default 72 hour voting window.

BIP-53 proposes to increase VP generation per LP share by 33%, from 150 to 200 VP per week, maintaining a fixed rate per UNI-V2 tokens staked.

Rationale

​​The previously passed BIP-42 has effectively increased the duration of staking for liquidity providers (LPers). The proposed VP increase aims to better incentivize LPers to maintain or increase their stakes while potentially attracting new ones. This aligns their efforts of providing liquidity with Botto's strategic needs of building sustainable long-term liquidity and fostering a stable token environment to sustain Botto’s future.

The protocol-owned liquidity (POL) position currently comprises approximately 27.84% of the total liquidity in the BOTTO-ETH Uniswap V2 pool. The DAO has already committed to executing strategic measures for building long-term liquidity, such as potential listings on centralized exchanges or OTC token sales earmarked for POL, as set out in BIP-42. It is important to note that this VP increase for LPers does not substitute these measures, but is an additive measure proposed to incentivize them.

Proposal Specifications

1. Adjustment LP tokens staked in the Liquidity Mining contract will now generate 200 VP per week

2. VP Calculation VP per week = Number of LP tokens staked × 200

3. Implementation Time 10 minutes

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For additional information on the points covered in this Snapshot, please refer to the Governance Forum thread that contains explanations of each line item above.

Explanations & Details: BIP-53: Adjusting LP Staking VP