Hey there, nope, this was just an idea I had for how to fix the emissions-stopped-too-soon-on-XDAI issue without causing the devs too much extra work… (I thought…) But just after I posted it, I saw Baowolf’s post appear and answer questions I hadn’t even thought of yet :)
I’m still waiting for updates to that thread to learn more…
It’d be great to have more BAO on mainnet, but it does seems that if the BAO tokens can serve the protocol (and therefor all of us) better later on, it’d be more prudent to keep them in reserve.
I like the idea that the total cap can still be lowered whilst keeping rewards high by re-instating that chopping board idea and simply removing some of the pools and adjusting the weights on others. My initial thought was about whether the weights could just be re-adjusted to be as they were before the XDAI farms started - that that would be an easy way to reach the target bao cap and keep everything running according to docs, at least in terms of supply.
But then it seems they found the same total cap glitch on the mainnet farms and something had to be done…
The idea of holding back BAO to be used as rewards later made more sense, as I know the entire franchise ecosystem is there to provide liquidation sites across multiple chains. The BAO tokens themselves would, I’d imagine, be used as incentives for people to hold LPs in pools where liquidations are necessary but not well facilitated by the current level of liquidity provision. (I could still have missed something huge here - I’m still piecing it all together really)
But somewhere along the line, I also got confused and thought we were going to burn BAO tokens when backing synths. I’m not sure where i got this idea… The docs do say that the synths will be backed by LPs. Anyway, I then went off on a tangent and thought I’d found another way to maintain TVL whilst simultaneously lowering rewards to hold BAO in reserve for later liquidity-provision incentives. I thought we could possibly tell everyone that between now and the release of synths, the rewards may be lower, but as well as the 5% of BAO which we normally receive straight away, another percentage of our BAO (earned between now and synth-deployment time) would be unlockable, but only to back synths when they came out… In that way we’d have an incentive to keep farming even with lower emissions as we’d have more rewards in the short term. I thought that backing Synths with BAO would almost have the same effect as staking and keep money in the system whilst giving people more of a feeling that their money was already liquid and they could direct it around the ecosystem.
But BAO won’t be used to back Synths, so I’m not sure where I got that from and it can’t be done :)
I’m learning really.