Two months ago B.Protocol community members voted to tokenize their voting rights.
The vote also dictated a token distribution schedule, which included 250k BPRO distribution for the first 3 months.
This distribution will end in 30 days.
Orthogonal to this distribution, a yearly distribution of 1,325,000 BPRO is given to the DAO reservoir, distributed per block.
The purpose of this post is to share my thoughts on the ending program, and to discuss ways to move forwards.
Ideally the token (i.e., governance rights) should be distributed to community members who empathize with the vision of the protocol, and could contribute to its success.
In my view the program failed in two aspects:
The big users of the platform did not hold the token and decided to transfer their governance rights. Moreover, despite having big players managing their funds via the platform, there was little to no effort from these players to contribute to the success of the protocol.
There was a significant decrease in the number of users and amount of deposited funds. While this is somewhat expected, due to signs of a bear market, the liquidity mining did not help in bringing new users to replace those who left or to add on top of them.
Ironically, the biggest community contributions, namely, mobile support by @jnssn, moderating by @a7om and @Commiekiller, reddit sub by @TragedyStruck and bip1 dashboard by @vipineth were done without any token distribution from the DAO.
Imo the next program should have the following characteristics:
Much fewer tokens should be distributed each month (and the rest will just stay at the DAO reservoir until the community will find a good use for them).
Most of the tokens should be distributed to users who stay, and who could contribute to the governance. This can be done both in ways of staking, and/or KPI based distribution.
Some minimal amount of tokens should still be distributed based on usage alone. This is to encourage 3rd party integration, who would still be better off than just integrating with Compound or MakerDAO.
Further distribution should be decided ad-hoc for specific purposes/users by DAO votes, and not as part of the liquidity mining program.