BNC buy back with treasury

1yr ago

6 Comments

Content

AI Summary

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

Do the treasury must begin to buy back BNC ?

Single

Anonymous

Expired 1yr ago

Yes

100%

Total 10 votes

Comments

emez...bai3

As with the other proposal, I'd advise starting with a small 5-10% and then working up. Plus I'd really love a treasury that does more than just tokens. We could potentially have a Tesla on Eloop running on Peaq Network's tech constantly serving the treasury for each ride. Just saying I'd love more diversification than stacking up a particular set of assets.

h7mW...qZiF

ok I like the idea but I would like some numbers on it that like comunnity should we discuss

How much is the current source of revenue? And how much of that will we use?

For example, if per month we obtain +100k $ of revenue

I would agree with a more conservative percentage of 10 to 20%, to keep the Treasury healthy and growing over time.

For now the revenue is a little lower, maybe 40-50% would be a good percentage, so the narrative have a decent impact what will benefit the economy model of Bifrost Protocol

dKqG...PFt8

BNC buyback plans will start after the launch of the new BNC 2.0 tokenomics expected Q1 2024， these buybacks are completed automatically as part of the new tokenomics code. A BNC 2.0 Tokenomics doc will be released in the new year outlining the new mechanism. As a result, I would advise to wait on this and its implementation.

Up 1

h5gA...jHjf

Wen BNC 2.0 tokenomics ?
:P

ddLf...yR9F

Guys i am big vDOT fan and going to increase my bags in the future. Would you be so kind to clarify vDOT 10% fees on fingers or/and create some promo materials about this topic?
https://docs.bifrost.finance/tokenomics/treasury#staking-liquid-protocol-fee

Lets say the guy have 4K vDOT = 5K DOT and want to unstake. Imagine he staked his 4K DOT from 1st day of staking launch. Or he borrowed this vDOT a day ago on some lending. How much he'll pay to unstake? 10% of entire 5K DOT = 500 DOT? OR 10% of the DOT value increase = 10% x 1K DOT = 100 DOT?

And lets say the time go and in five years 4K vDOT = 20K DOT. Would it mean the fee to unstake will be 2000 DOT? Would it mean the real APR of the staker will be 8% = (18%-10%) instead of 18% as we have nowdays?

Imagine some guy staked 100 DOT at the point 1vDOT = 2 DOT some years later and then going to unstake at the point 1vDOT = 2.36 DOT one more year later. Does 10% fee mean he'll need pay 10% x 236 DOT = 23.6 DOT which is more then he actually earned for entire year in such a case?

ddLf...yR9F

I suppose the better idea is to make the fee slightly growing anyway, like +1% each month or smth. Otherwise the big vDOT sell-off is possible exactly on time on fee launch, cause this fee will technically mean vDOT/DOT 10% price drop in a moment in some sense.