BIP-42 (v3): Liquidity Mining Contract Extension

Summary

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

BIP-42's Snapshot proposes the following main points:

1. Botto’s LM contract is extended one year to October 2025.
2. Botto Treasury adds 50ETH + $BOTTO equivalent to the Uniswap pool on top of existing PoL
3. BottoDAO pursues OTC investment(s) to raise funds earmarked for protocol-owned liquidity and/or other solutions to build long-term liquidity such as CEX listings.
4. BottoDAO may use up to 4M treasury $BOTTO for such OTC deals and/or other liquidity solutions (the 50eth equivalent in $BOTTO added to PoL upon this proposal's passing counts toward this). This is independent of the $BOTTO allocated for OTC in BIP-35.

Disclaimer: The DAO may elect to remove the liquidity mining programme and its incentives at a later stage, prior to the scheduled end date. A subsequent proposal, three months notice, and the means to create sufficient liquidity without LM incentives would be required.

Rationale

Botto’s LM contract currently has approximately 4.5M $BOTTO remaining to be distributed in the next 7 months, with 125k $BOTTO distributed per week.

The pool contains around $8M in liquidity, of which 22.6% or $1.8M is protocol owned.

Renting liquidity is costly and unsustainable. Botto spends around $105k per week in $BOTTO to LPs. This exceeds Botto’s current revenue and creates sell pressure. Botto has significantly higher DEX liquidity than almost all crypto projects around the same valuation. This suggests that Botto is paying for more liquidity than it needs.

When Botto implemented its LM program, it had no ETH revenue or liquid treasury assets. Two years later, circumstances have changed. Botto now has a deep and growing treasury. It no longer makes sense to pay 125k BOTTO per week in exchange for short-term liquidity.

This proposal facilitates BottoDAO to pursue long-term, sustainable liquidity. Outside of raising funds earmarked for PoL, other potential solutions that may be pursued include:

• Centralized exchange (CEX) listings
• New incentive structures for LPs such as increased VP allocation
• Using $BOTTO burn equivalent to build PoL

Proposal Specifications

1. Botto’s LM contract is extended one year to October 2025.
2. Botto Treasury adds 50ETH + $BOTTO equivalent to the Uniswap pool on top of existing PoL
3. BottoDAO pursues OTC investment(s) to raise funds earmarked for protocol-owned liquidity and/or other solutions to build long-term liquidity such as CEX listings.
4. BottoDAO may use up to 4M treasury $BOTTO for such OTC deals and/or other liquidity solutions (the 50eth equivalent in $BOTTO added to PoL upon this proposal's passing counts toward this). This is independent of the $BOTTO allocated for OTC in BIP-35.

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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-42 v3: Liquidity Mining Extension and Transition to Protocol-Owned Liquidity