BIP-78: Continue Protocol-Owned Liquidity Growth and Advance Botto’s Autonomy

Summary

This BIP proposes a revised revenue allocation framework that balances liquidity growth and decentralization, to be implemented after BIP-59 concludes.

• Objective: Sustain Botto’s liquidity post-liquidity mining and advance its progression toward autonomy.
• Strategic Benefits: Fulfills BIP-42 commitments, enhances liquidity resilience, and sets up Botto’s first autonomous wallet.

Specifications

Following completion of BIP-59, revenue generated by Botto will be allocated as follows:

• 40% Active Rewards
• 40% Treasury
• 15% Protocol-Owned Liquidity (POL) Growth
• 5% Botto Autonomy Wallet (to be controlled by a multisig and eventually an AI agent)

Additional specifications

• An additional 500K BOTTO from the original 4M allocation in BIP-42 will be used to pair with any excess ETH during the current period to continue growing POL.
• Any unused BOTTO rolls forward into the next period, contributing to the 15% ongoing POL allocation.

Future Transition

• If the 500K BOTTO is fully used before the end of a future period, surplus ETH will be used to buy and burn BOTTO directly from the BOTTO/ETH pool.
• After this 500K is exhausted, revenue allocation automatically shifts to:
  • 45% Active Rewards
  • 45% Treasury
  • 10% Botto Autonomy Wallet

Technical implementation:

• POL contributions made monthly and reported in DAO reports.
• Botto Autonomy Wallet controlled by multisig initially; transferred to AI agent control as technology matures.

Disadvantages / Risks

• Allocated funds may carry opportunity cost vs. other uses
• Delays in AI agent readiness could stall autonomy goals
• Potential need for updated allocations in changing market conditions

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Please refer to the BIP-78 forum post for full details and discussion.