Thanks for the update Benny! I think it is smart to wait for the update and start a onchain vote.
4 Likes
I think waiting for the batch distribution contract would be the best method. Great news that it’s almost done.
I feel like there is a consensus for 18-25% in the recent discussion. To keep the conversation moving forward and making things more concrete I added these percentages into the proposal draft. It can still be edited of course so if you have additional input, feel free to share. Once we finalize the details I will put a link in the proposal to a document where every (liquidated) borrower can find howmuch sICX will be distributed to his/her wallet if/once enacted.
Language is important so I tried to make a convincing argument but feel free to provide feedback on wording.
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Thanks so much. We all appreciate all the help doing Chiel and everyone else who gave input 
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18-25% seems like the best compromise. Fingers crossed it gets voted through.
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So when will the vote take place exactly ?
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The proposal is being finalised atm. Take a look if you want and feel free to provide some final feedback if you find any part confusing or incomplete. I heard that the necessary contracts are also being finalised/deployed. So soon 
however, getting it right is important so giving the exact day/time is difficult.
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FYI - Batch Disbursement Contract has been deployed, so from a smart contract level we’re good to go. I’m planning to crunch some numbers separately from @Chiel to see if our numbers line up, then the proposal can go up and data can be uploaded to the contract
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Now that we are in the final stretch we must consider how we want to present our proposal to the community. The in-app proposal has a limit of 500 characters limiting our options. I have considered three options on how to present the proposal and would love to hear a few opinions while Scott is crunching numbers.
Option 1: Give an ‘explanatory argument’ combined with numbers:
On Jan 20-24th 174 borrowers got liquidated in exceptional circumstances. Reverse rebalancing heavily increased loans of all borrowers, often locking collateral in the process. During this period 1.53M sICX was added to the emergency reserve. As a sign of goodwill 1.32M of the liquidated sICX will be returned from the reserve scaled linearly (18-25%) from beginning to end. Furthermore, 100k sICX will be distributed pro-rata the loan to all non-liquidated borrowers. Details: https://bit.ly/3LBaim6
Option 2: Keep the in-app proposal solely focused on numbers:
During the liquidation event on Jan 20-24th 1.525M sICX was added to the emergency reserve. 1.32M sICX will be returned to liquidated borrowers scaled linearly from beginning to end between 18 and 25%. Furthermore, 100k sICX will be distributed to non-liquidated borrowers pro-rata the loan on Jan 20th. This leaves over 106k sICX to be added to the original 743K sICX in the emergency reserve for platform enhancements. All details: https://bit.ly/3LBaim6
- Don’t give any in-app description and solely provide the link to all details:
See full description here: https://bit.ly/3LBaim6
Let me know what you think by giving a vote or leaving a comment.
- Option 1
- Option 2
- Option 3
0 voters
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First of all, great work! I like option 1 best because of the brief description of what happened. Then the voters may understand WHY it should be a return of some of the fee. I think the why part is crucial.
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Only thing I would comment on is that it could be clearer in the text that it is only a part of the fee that gets returned, so voters know that it was a very high penalty fee at that time. I think many of the voters haven’t looked properly into the situation, so much of what we have discussed in this forum is new to many of the voters.
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100 % agree needs be abit more info including returning part of penalty fee
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Yea totaly agree there. We could put that clearly in the title of the proposal to make that clear
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That was the point I didn’t realize in the beginning that made me vote no on the first proposals. I voted yes later on the last ones, but if more BALN stakers knew about the liquidation penalty then they’d probably change their stance like I did.
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I think the title is spot on. Might want to include a brief description on the liquidation penalty itself, and how that differs from just getting liquidated because you were greedy, overleveraged, or just SHTF and that’s how it goes.
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Great work Chiel!
I would suggest making it clear that the liquidation was progressive, which indicates the need for the scale. I took the liberty to adapt the text (still within 500 characters):
"On Jan 20-24th 174 borrowers got liquidated in exceptional circumstances. Rebalancing progressively increased loans, often locking collateral. During this period 1.53M sICX in penalty fees was added to the emergency reserve. As a sign of goodwill, 1.32M of this liquidated sICX will be returned, scaled linearly (18-25%) from beginning to end. To support non-liquidated borrowers, 100k sICX will be distributed pro-rata. All sICX will come from collected penalty fees. Details: Emergency fund - goodwill - blackswan event - refine proposal - #141 by Chiel - Proposal Discussion - Balanced "
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Any updates on when this will go to vote?
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Any idea when this vote is going to go live? I unfortunately don’t have enough BALN to put in a vote myself but have been trying to accumulate more to strengthen my voting power. The discussion here has been great and I really hope the majority comes to the conclusion that this vote benefits everyone and strengthens the protocol moving forward. I wasn’t liquidated myself but feel this was a black swan event and it should be recognised as one. We have an emergency fund and if this wasn’t an emergency I don’t know what is
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I asked this question yesterday and had my comment removed dont understand what taking them so long it been over a month now they need to get things together
I think we shouldn’t rush it. It’s better to get it done so it get approved rather than denied! Each time a proposal comes I think it will be harder and harder to pass so ideally this wants to be the one approved or we will struggle