The current BALN bribes are nearing an end, so it’s time to discuss next steps. See below for the previous BIP on the topic.
Based on the vote data during the bribe period, it’s clear that bribes are an effective mechanism to help the DAO better direct inflation while also rewarding additional BALN to a good target group of the most active bBALN holders on the platform.
I’d like to propose that Balanced DAO continue the bribe initiative for 3 more months with some small adjustments. I suggest the DAO remove sICX/BTCB from the bribe initiative given the recent uncertainty around Binance. Once things settle down I think it would be a good time to revisit this, or also consider an ETH-based pool from a different bridge/network.
Watching the way inflation worked out, it is also apparent that the smaller bribe amount for the BALN/sICX pool had a noticeable difference on its inflation allocation. For this proposal, I suggest to increase the incentives to 3,000 BALN per week.
In summary, I propose the below weekly bribes for the next 3 months
sICX/bnUSD: 4,000 BALN per week
BALN/sICX: 3,000 BALN per week
Hmm I’d be open to it but want to think more about it.
I would say it won’t necessarily lead to more liquidity, but would definitely lead to more rewards to the most valuable LPs (sICX/bnUSD). We are cutting 4k BALN per week from the sICX/BTCB pool, so I’d be open to increasing sICX/bnUSD. My concern tho is it might lead to low incentives for BALN/sICX if the gap is too large. Might need to increase both.
Generally speaking, I’m starting to have second thoughts on the importance of bribes right now. While it has a clear impact on directing inflation, inflation itself is so minimal that I’m not quite sure the benefit is there. I’m open to keeping them going for sure, just not seeing it as a pressing task.
Separately, I’m considering that now would be a good time to increase POL using the DAO Fund sICX (will create a separate thread for this if I decide to do so)
Locking BALN up for 4 years is giving a user 2.3 percent interest. Balanced has had a terrible year, no sugar coating it. But brighter times are ahead with ICON grants and stabilization of the peg. We have taken a ton of punches.