Dear All,
I want to open a discussion on BNC buy back from the treasury.
As we can see inside the tokenomy, it's something planned but not yet activate :
https://docs.bifrost.finance/tokenomics/treasury#treasury-expenditures
We currently see the mood of the market moving on the bull market.
I think it's the good moment for Bifrost to begin the buyback.
Make some buyback have many advantage for Bifrost :
- Will make a buy pressure on the token, and it can motivate new users.
- Can be a key word for some users.
- As it will grow up BNC price it will grow up APR for different farming pay in BNC.
And so will attract liquidity on the different DeFi products of Bifrost.
This new liquidity will make more rewards by fee, and so more possibility of buyback. A good circle.
As defined on the tokenomy, we have different treasury incomes.
My discussion is to open the talk to make the buyback from the staking liquid protocol fee.
https://docs.bifrost.finance/tokenomics/treasury#staking-liquid-protocol-fee
I think it's interesting to use these rewards for the buyback.
A fixed % of them can be used for the buyback.
Why not 50% ? Need to be discussed with the community.
For a first step, I suggest doing it only for KSM & DOT rewards.
- DOT with 10% fee will generate around 38k$ per month at current value.
- KSM with 10% fee generates around 16k$ per month at current value.
Also, it can be nice to use the DeFi possibility available on the ecosystem.
It's for this my suggestion will be to make 1 time a month, a DCA inside HydraDX platform to buy back BNC.
As we can program DCA inside HydraDX, it looks to be the most simple, and it develops connections between different DeFi possibilities of the ecosystem.
Some tokens aren't available on HydraDX, as KSM, and so the best for KSM is directly inside Bifrost pool.
With only 50% of fees commission on DOT & KSM (at 10% fees), it will give the possibility to buy back around 3% of the circulating supply by year at current value.
I want to see what the community thinks on this subject, to maybe make a governance vote to begin to buy back BNC.
Best Regards,
No Risk - No Fun
Bifrost wants to start a buyback of their token BNC from the treasury. This can motivate new users and attract more liquidity to their DeFi products. They suggest using the staking liquid protocol fee for the buyback and want to discuss using 50% of it. They propose doing this only for KSM & DOT rewards and suggest making a monthly DCA inside HydraDX platform to buy back BNC. This will allow them to buy back around 3% of the circulating supply by year at current value. They want to hear from the community to make a governance vote to begin the buyback.