1. Summary
This proposal seeks to continue the 20% POL allocation established in BIP-59 without a fixed amount of BOTTO (though the up to 4M BOTTO set aside for liquidity solutions per BIP-42 serves as a ceiling on this proposal's implementation), ensuring sustainable POL growth until modified or ended by a future governance proposal.
After BIP-59 is fulfilled, Botto's recurring revenue, as derived from weekly auctions for example, will continue to be allocated as follows:
• 40% Active Rewards
• 40% Treasury
• 20% POL Growth
Note that the 40/40/20 revenue split is not by default applicable to revenue derived from special collections such as the p5 drop with Verse and sales of fragments held by the treasury such as Err Hold. In both of those examples, their respective governance proposals aligned with the 40/40/20 revenue split previously set by BIP-59 and did not suggest any adjustments. However, this does not preclude future proposals for similar examples to propose alternative revenue splits.
2. Rationale
BIP-42 allocated up to 4M BOTTO for liquidity solutions but lacked implementation details until BIP-59 was approved late last year. BIP-59 initiated POL growth but is expected to end soon once the 500K BOTTO set aside for its implementation is utilized.
BIP-59 has established a successful POL growth framework with its 20% revenue allocation. Continued POL growth supports long-term protocol sustainability, provides stability, and generates protocol revenue from associated trading fees. This is especially critical to uphold as Botto's liquidity mining program concludes on October 15, 2025, and there has been no progress on alternative liquidity solutions noted in BIP-42, such as OTC deals and CEX listings.
This proposal thus seeks to enable a path forward that accomadates ongoing POL growth once BIP-59 is completed and with operational simplicity in mind. Unlike BIP-59, a defined amount of BOTTO will not be apportioned from BIP-42 for this proposal, though the up to 4M BOTTO set aside for liquidity solutions in BIP-42 ultimately serves as a ceiling. Instead, POL growth may simply be modified or ended once the DAO determines in the future that it is no longer necessary, or once the 4M BOTTO from BIP-42 is fully utilized, whichever comes first.
3. Proposal Specifications
• Maintain current 40/40/20 revenue split (treasury/active rewards/POL). As noted above, this revenue split would apply by default to Botto's ongoing sales such as weekly auctions, though alternative revenue splits for special collections and sales of fragments held by the treasury could be suggested in their respective governance proposals in the future.
• Remove fixed 500K BOTTO allocation from BIP-42, as previously set aside for BIP-59, with the up to 4M BOTTO committed in BIP-42 instead acting as a ceiling on this proposal's implementation.
• Takes effect immediately upon BIP-59 fulfillment; no transition periods or governance renewal votes needed moving forward.
• Continue POL contributions as established from Botto's recurring sales until modified or ended by a future governance proposal, or until the 4M BOTTO from BIP-42 is fully utilized, whichever comes first.
• Use existing deployment mechanisms for provision of POL in the Uniswap V2 BOTTO/ETH pool on Ethereum mainnet.
4. Criteria of Success
• Fulfills BIP-42 commitment to sustainable liquidity.
• Provides clear implementation framework.
• Maintains DAO credibility through action.
• Sustained POL growth and associated protocol revenue generation from POL trading fees.
5. Disadvantages/Risks
• Opportunity cost of allocated funds.
• Potential need for POL allocation adjustments based on market conditions in the future.
