As the number of tokens on the Balanced DEX begins to grow, it’s going to get quite unwieldy to handle (and also become not possible from a technical standpoint) to distribute Network Fees in each type of token.
I’d like to propose that we convert all non-bnUSD assets into BALN prior to distribution, but still distribute bnUSD as bnUSD. Originally I was thinking of converting all to BALN, but hear me out on the logic.
It’s a bit of a psychological thing. If we distribute both BALN and bnUSD, I would expect most users to restake the BALN earned or use the bnUSD earned to LP in BALN/bnUSD pool. By still giving bnUSD, you make users feel like they have already captured some value and there’s no need to sell the BALN.
If we give all rewards in BALN, I would expect most users to sell some of the BALN upon receiving it. While it may all end up similar economically in the end, I think there is a decent psychological benefit to paying some in bnUSD and the rest in BALN. Having said all that, I’m also open to BALN-only rewards but think my initial proposal is a happy medium between what we have now and something more scalable.
Let’s have a discussion below, and if we can come to general consensus on the forum then I don’t think there’s a need for a formal on-chain vote for this type of change, though I’d be happy to vote on it if that’s what the community wants.
EDIT: After feedback, this is the new plan going to a vote:
All tokens that are not one of these three will be converted to BALN (assuming it’s technologically feasible)