IMPORTANT NOTICE: This is a ‘concept’ under discussion. It is not yet a formal governance proposal. The ideas contained in here may not ever reach a formal proposal. This is for exploring new ideas
With the unlocking, we currently have a 3 year time in which tokens will unlock.
Some users have concerns that the Bao burnt in synthetics will not be at the scale needed for offsetting the unlock cycle.
One design in which we could create to change this would be a dynamic unlock.
Basically the way it would work is you would set the lock range to a much higher date (like 10 years), and an oracle that looks at the amount of Bao burnt each day.
Every time there was less Bao burned that day than was unlocked, the oracle would increase the lock time.
Every time there was more Bao burned that day than was unlocked, the oracle would decrease the lock time.
You would then have some absolute cap date to prevent the extended lock happening forever. And you can have some dampening variable in either direction so that it can be over or under by a little and not adjust.
That would be a large change in tokenomics but it is a possible way to dynamically address the inflation rate over the adoption curve of the product.