BIP-06 - Treasury Diversification and BB&B Upgrade - Botto

BIP-06 - Treasury Diversification and BB&B Upgrade

choobie

I think this proposal is relatively straightforward and clear, thank you for setting it up @Ben. I think this preserves the idea of having a BB&B mechanism in Botto without being prone to frontrunning. The reduction in weekly buy pressure might be slightly noticeable, although I suspect with the majority of other changes, this reduction will become negligible in the coming few months. Regarding the quantity burned, I would align more closely with 100% of BOTTO equivalent being burned rather than any other %. This is for simplicity's sake and the difference would be negligible until proven otherwise.

I understand that you, among many of us already have an idea of what to do with the extra treasury ETH, I would propose we hold off on further suggestions until after the treasury summary is published (+-2 weeks from now). I distinctly remember you might have posted some calculations re. PoL on #governance-discussion and timeframe to achieving fully PoL. Perhaps you could share that publicly (even if it's napkin maths, it helps!)

Returning to this proposal, there are no development implications here besides probably touching up our Discord bot (monitoring the sender address -> 0xdead, from memory we're burning directly from the SR botto.eth address, not the multisig). I'll double check that for us.

I would encourage anybody who might not fully understand certain concepts to ask them here!

Ben

All sounds good. Look forward to the upcoming treasury summary and will plan to tackle PoL stuff after that.

zoku

This proposal represents a great advance in the long-term sustainability and value creation mechanism.

I support the proposal of Vyper to burn 75% of the ETH equivalent in BOTTO. I know that this idea is more radical and will have difficulties having the votes, so I propose to burn de 90% of the ETH in BOTTO. Technically it represents an improvement on the basis of tokenomics.

I hope that this proposal comes out quickly so that we can move forward on more pressing issues: attracting new members, strengthening the membership base and active voters.

hudsonsims

zoku I disagree with changing it to 75% or 90%. 100% maintains the principle of the burn and impacting relative ownership of holders.

Granted, this new burn is less direct of a (theoretical) impact as the open-market buy pressure, but with the slippage and frontrunning it's the same effect of increasing ownership percentage of overall volume over time and in this case we keep the ETH for treasury. While it's a step away from the simplicity of the original set up in terms of an automated redistribution, it's pragmatic and balanced out by the upcoming drops that function as direct rewards.

zoku

hudsonsims yeap, I get the point now after reading again some of the Ben numbers...

after all we always can stop/change de bbb.

chrisrauh

Excellent proposal. Simplifies the process and opens the way to a lot of opportunities.

roedesh

Great proposal! I personally don't have a strong opinion about the % of BOTTO that we burn. But I like that we will keep the ETH from the auction proceedings, which can be used to strengthen the project in many ways.

adr94

Excellent idea.
The distribution to voters is a good way to improve BOTTO's "taste". It should be in favor of the "little" voters so there is less risk to see random voting behavior.

zoku

adr94 I guess this will be the next big topic of discussion.

Quasimondo

One question: how will the amount of $Botto that gets burned from the treasury be calculated? If I understand it correctly there is no market transaction involved in that process, but rather the amount of $Botto that X amount of ETH would buy would be calculated based on the current exchange rate of the Uniswap pool "manually"? So will there be a certain procedure at which time that value is taken? E.g. at the time of the sale? Whilst most of the time the exact time might not make a difference, but lets imagine another 100 ETH sale which also drives up the $Botto price, which could have some impact on how much $Botto can be burned.

Edit: ( I just saw that this was somewhat explained in the proposal), so never mind....

Quasimondo

I would propose to change #2 from "time of the burn" to "time of the sale", which removes wiggle-room and "human error" from the calculation:

An equivalent amount of $BOTTO is burned from the treasury. This can be calculated by taking the Uniswap price of $BOTTO at the time of the sale and subtracting any price impact (slippage) and swap fees.

Ben

Quasimondo Agreed, modified it to "Uniswap price of $BOTTO at the time of the sale (auction end) and subtracting any price impact (slippage) and swap fees."