1. Executive Summary

Following the conclusion of the bbBNC event, a community proposal has emerged regarding the distribution of rewards for Round 1 and Round 2. The proposal suggests offering users a choice between the original BNC Vesting schedule or converting their rewards into bbBNC locked for 1 year. This discussion aims to gather community sentiment before moving to an official governance vote.

Voting Guidance:

• Vote [Aye]: In support of introducing the bbBNC conversion option (1-year lockup with yield).
• Vote [Nay]: In favor of maintaining the original BNC linear vesting schedule (12-month release).

2. Background

The rewards for Round 1 and Round 2 were originally designated as BNC, to be distributed via a 1-year linear vesting schedule.

• Round 1 Total Rewards: 139,048.019 BNC
• Round 2 Total Rewards: 48,717.385 BNC

While the vesting model is standard, community members have expressed a preference for bbBNC due to its ability to retain yield-bearing properties, which linear vesting BNC does not offer.

3. The Proposal

We propose to offer eligible users a choice between two distribution paths:

• Option A: Standard BNC Vesting
  • Mechanism: BNC rewards released linearly over 12 months.
  • Benefit: Immediate commencement of the vesting process.
• Option B: bbBNC Conversion (1-Year Lockup)
  • Mechanism: BNC rewards are converted to bbBNC and locked for 1 year.
  • Benefit: Users do not lose out on the potential yield/staking rewards associated with bbBNC.
  • Trade-off: This requires additional technical development, resulting in an estimated minimum 2-month wait before the feature goes live.

To reflect your preference in the upcoming Snapshot vote:

• Vote [Aye]: To support the implementation of Option B (bbBNC Conversion).
• Vote [Nay]: To remain with Option A (Standard BNC Vesting).

4. Key Considerations for the Community

To ensure a smooth implementation, we would like to hear your thoughts on:

1. Development Lead Time: Are you willing to wait ~2 months for the bbBNC option to be developed and audited?
2. Selection Permanence: Should the choice be a one-time selection for the entire reward balance of each user?
3. Yield Incentives: Does the yield benefit of bbBNC outweigh the liquidity of linear BNC vesting for you?

5. Implementation Process & Timeline

If the community shows a clear preference for having a choice, the following steps will be taken:

1. Snapshot Vote: A formal governance vote will be initiated to confirm this dual-option model.
2. Selection Window: A specific period (e.g., 7 days) will be opened for users to connect their wallets and commit to either Option A or Option B.
3. Development Phase:
   • Option A users: Distribution begins according to the existing schedule.
   • Option B users: The smart contract for bbBNC lockup will enter development and auditing (Estimated: 2 months).
4. Deployment: Once the development is complete and the distribution method is executed, users will be able to see their received bbBNC directly in their account dashboard.

6. Why This Matters

This proposal is a direct response to community feedback. By offering Option B, we provide a way for long-term supporters to maximize their capital efficiency through bbBNC's yield-bearing nature, while Option A ensures that those who prefer liquidity are not delayed.

7. Conclusion & Call to Action

We value your input. Please share your thoughts in this thread regarding:

• Do you support adding the bbBNC option despite the development wait?
• Are there any alternative suggestions for the lockup period?