Summary: rewarding the trainers of the "AI" - Vote, Buy Back and Burn - the future of the art
The idea of that proposal is to reward people who stake their BOTTO and use them to vote. Many people has expressed the lack of incentive of voting. That proposal aims to reward people who vote versus people who dont.
that proposal aims as well to answer the question: “why should I invest in BOTTO?”
Motives / Background:
In an ideal world we want people to vote “for free” but I think it can’t work and would imply that BOTTO token has no value. If I don’t get rewarded to participate in the project, why I would need to pay to vote (as you need to buy BOTTO)
We need BOTTO to be something valuable and different from the ponzinomics token.
We want as well people to get upside if they invest into the project through kind of dividend.
We want something different to “buy token to get a similar token”
We need people to feel they own part of the project it self. It has to work like dividends in real life. Dividend are paid in cash most of the time. Cash is ether here
By doing the below, I believe we will have massive adoption.
In the future, I believe it will be very important that BOTTO Is used as a governance token as well but I believe it is already in the roadmap.
People staking BOTTO get VP and use VP to vote on the next artwork.
People get rewarded in BOTTO only if they provide liquidity. This stops ~ 6 months from now.
Liquidity mining rewards, in case BOTTO project is successful, will be mitigated because of impermanent loss
People don't get rewarded if they vote or train the AI.
People are exposed to smart contract risk by staking BOTTO to vote and are not rewarded to take on that risk
I believe that very soon, AI will dictate what we like and what we do not like. To achieve that, we need people to massively adopt the project and vote
BOTTO does not incentive people to vote as there is no reward (except than enjoying the fact that you might vote for the winning artwork and/or training the AI)
When the liquidity mining program will end, people will have less incentive to hold BOTTO
People invest their money to buy BOTTO but don’t get “dividends”
Risks / Caution:
- Part of my proposal is to allocate a part of the liquidity mining reward to BOTTO pool. This will reduce the APY of the current liquidity pool.
- We need to do some simulations to see what will be the yield of such proposal (assuming different TVL and sales proceed)
TBD - polling is a good idea to see if the proposal is well received by the community
1/ During week X, people staking BOTTO will be able to vote. At the end of the auction, 75% of the sales proceed is used to buy BOTTO, te be burned
10% of the sales proceed (in ether) to be redistributed to people who voted during the week X (proportionally to the number of vote). So here, reward are distributed to voters of the previous week.
2/ 5% commission received through secondary market purchases will also be used to burn BOTTO, the remaining 5% (in ether) to be allocated to the BOTTO staking pool. It should be distributed proportionally to people who stake BOTTO - I suggest to distribute it on a weekly or monthly basis taking into account the number of BOTTO staked and the period of staking.
3/ Allocate a part of the liquidity mining program to people staking BOTTO only. I propose 30%. It will reduce the yield of the LP staking but incentive people to vote, train the AI and hold BOTTO.
For 1/, it should be distributed proportionally to voters only. For 2/ and 3/, given it is not related to the artwork of the week, I suggest to distribute it proportionally to all people staking BOTTO (and not necessarily voting)
Implementation / Participant
We will need few people to socialise the proposal and devs to implement it.
Budget (If applicable):
TBD - almost only dev works
Milestones and Criteria:
- ETA to be defined
- 3/ is important to be implemented ASAP to facilitate massive adoption
- point 3/ to be implemented first given the liquidity mining program ends in 6 months
- monitoring of TVL before and few days after implementation
I am sure i have missed some details but should be a good start.
I am not against a second token (as per @rarest suggestion) but i am afraid it might dilute a bit the value of the main BOTTO token. But we should all have a discussion on that