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Dracula ProtocolDracula Protocolby0x7Fb7e28B8bbbA6A0C28c8Ac6a522C2FEFe44ee960x7Fb7…ee96

A more efficient drain

Voting ended about 5 years agoSucceeded

Current block rewards is 100% buyback. Proposed rewards is 50% buyback, 45% to liquidity lock and 5% to the new feasting pool.

Liquidity locking makes it harder for a token's price to move up or down. Right now, our holders have experience large IL, and liquidity locking would just ensure that their impermanent loss is more likely to become permanent loss. Also, liquidity locking is nothing compared to the actual holders here who are staking drc. You could lock 5 eth worth of liquidity, but if a staker gets dissilusioned and leaves, that could be 100+eth worth of liquidity gone overnight. Also, people who are just hodling drc don't gain from liquidity locking either.

There is only one group that benefits from liquidity locking. New buyers. The reason is that the price does not bump up as much. However, without a large feasting pool, what is the point of new buyers? New buyers would just go to another agregator token like harvest that keeps their aggregation focused on generating value instead of locking liquidity.

My proposal +10% withdraw penalties for people exiting the drc/eth staking contract. 5% of liquidity is locked forever, achieving same results as if you had bought the liquidity with eth in the first place (free money for protocol) 5% is withdrawn. The drc is burned, and the eth is used to buy and burn even more drc.

15% of drained eth goes to the new feasting pool to ensure people lock liquidity. 85% of drained eth goes to drc buybacks to increase our price.

This proposal is 10% more efficient than the current proposal in terms of fund usage overall, and in terms of fund effects, its 60% more efficient. Why is it more efficient? Because it relies on both punishments AND rewards and leverages end users instead of simply working with a small pool of funds.

Off-Chain Vote

yes
411.49K 100%
no
0 0%
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Timeline

Nov 06, 2020Proposal created
Nov 06, 2020Proposal vote started
Nov 13, 2020Proposal vote ended
Oct 26, 2023Proposal updated