As it stands BPRO is a token without cashflow and can only be used for governance of the protocol. I believe that holders of the tokens need to be rewarded for their role in the governance.
This will incentivize users to hold their token leading to less velocity and thus a more stable userbase which is in the interest of the protocol.
Bprotocol currently get its cashflow from liquidations, the proceeds of which get shared 75/25 between the liquidator and the jar (which in turn gets shared pro rata by score holders),
I propose that we divert some of this cashflow to BPRO holders by having a new contract buy BPRO on the open market and subsequently burn it, creating upwards pressure.
The community has come to a consensus and before making this into an official proposal I want to gauge interest. We need to decide on the following;
- Do we actually want to implement a buy/burn strategy to reward BPRO holders?
- How should the cashflow be divided (e.g. 75/20/5 for the liquidators/jar/BPRO holders)
- To buy on the open market we need a good source of liquidity. A proven way of doing this is by allowing liquidity tokens to be staked. What do we reward the liquidity stakers? (e.g. 1 BPRO per block)
- Where do we source the liquidity? At the moment there is a sizeable pool on Uniswap v2 but why not see if we can do a deal with Sushiswap? They get guaranteed trading fees and LP’s get SUSHI on top of their BPRO rewards. (any better ideas?)
Any input is appreciated but keep in mind to balance the interest of all stakeholders (liquidators, debt suppliers, and BPRO holders). The system cannot function without any of them so we need to make sure that we don’t drive one group away.