Hello! In order to increase the value of Defibox, better empower BOX token price, lower BOX inflation rate, and prepare for the multi-chain process. The Defibox Foundation officially launched the DIP26. The voting time is from 12:00 (UTC) on April 8, 2021 to 12:00 (UTC) on April 10, 2021. The specific information is as follows:
In March 2021, Defibox released the "2021 Development Road Map". Defibox is about to start multi-chain exploration, in order to increase the value of Defibox, better empower BOX, reduce BOX inflation, and switch to USN stable coin as pricing standard. The foundation proposes the DIP26. This proposal involves the new distribution method of Defibox protocol income, the update of LP mining rules, and the giving major resources to USN+BOX liquidity pool.
The price of BOX token is the core driving force of the Defibox system. Through the DIP20, the distribution method of protocol income was changed, which greatly increased the depth of the EOS+BOX liquidity pool, playing a positive feedback role for the Swap protocol. Combining the experience of the DIP20 and community opinions, it is hoped that this proposal can better promote the vigorous development of the three basic protocols, and ensure that the protocol income can better promote the positive cycle of Defibox. At present, 75% of the protocol income of the three basic protocols (0.1% of the Swap transaction volume, USN stable coin interest, liquidation penalty, and interest differential of the Lending protocol) is used to reward the EOS+BOX liquidity providers. This allocation method is not locking the value of Defibox at current stage, nor is it giving a positive effect on the price of BOX.
Therefore, the foundation intends to no longer incentivize the EOS+BOX liquidity pool with 75% of the protocol income. Instead, 75% of the protocol income will continuously be used for BOX buy-back & burn through Swap. If this proposal is passed, 75% of Defibox protocol income will be used to buy-back and burn BOX token, and EOS+BOX liquidity pool revenue will be greatly reduced. If the liquidity mining weight is increased to gradually stabilize the revenue of EOS+BOX liquidity pool, under the existing LP mining rules, although the revenue of EOS+BOX LP can be increased, it will affect the liquidity mining revenue of other liquidity pools, which is not conducive to the stable development of the overall liquidity pool. Therefore, the foundation combines community opinions and the current development situation of Defibox, it is planned to allocate 75% of the protocol income to buy-back BOX token for burning. At the same time, a new plan for LP mining rules is proposed. The details of this proposal are as follows:
（1）75% of the protocol income will be used for BOX buy-back & burn, 15% of the protocol income will be allocated to risk reserve, 10% the protocol income will be used for NDX buy-back & burn (in return for Newdex support and funding).
（2）New LP Mining Mechanism
- Smart contract release 0.002 BOX per second for LP mining
- Each liquidity pool has independent LP mining pool and they are independent of each other
- The BOX in a liquidity pool mining per second = 0.002BOX * 70% * mining weight of this liquidity pool * the proportion of your liquidity asset value to the total liquidity asset value
1）As 75% of the protocol income is used for BOX buy-back & burn, the BOX price is deeply binding with Defibox key performance indicator: TVL, Swap volume, USN Generation, fine income, interest differential, etc. The higher the protocol income is , the more BOX buy-back & burn will be. With more buy-back & burn, the less circulation will be and the BOX price will go up. (e.g. daily Swap protocol income is 2500 EOS, 1 BOX = 3 EOS, 830 BOX will go for buy-back & burn on daily basis. For one year, 300,000 BOX will go for buy-back & burn and in 3 years, 1 million BOX will go for buy-back & burn.
2）Total weight for LP mining is 12, for each 1 mining weight corresponds 0002BOX, and it will be released to liquidity pool according to its mining weight. If DIP26 is implemented, the change of single liquidity pool will not have effect on other liquidity pool; secondly, by adjusting LP mining weight, we can have control over BOX release, utilizing BOX resource more efficiently to enhance the development of Defibox Swap.
3）If DIP26 is passed, we will give major weight to EOS+BOX liquidity pool and USN+BOX liquidity pool. For the reason: EOS+BOX liquidity will have new mining weight to improve the stability and APY. Also we are planning to give USN+BOX major weight in order to establish USN pricing standard for BOX, reducing the effect from EOS price fluctuation; get ready for Defibox multi-chain strategy; and expand USN application scenarios.
This revolution concerns Defibox protocol income allocation, LP mining mechanism and resource leaning to USN+BOX liquidity pool. Defibox as a decentralized product can not evolve without support from community BOX DAO. Defibox Foundation hope every BOX token holder can participate Defibox governance, hand in hand together, moving towards a better future!
- The total votes of the proposal must account for ≥ 30% of the total BOX staking amount; (abbreviation: proposal participation)
- The votes for an option must ≥ 55.00% of the total votes of the proposal;
- The Foundation will start execution after the vote is successful;
- Proposals that do not meet the execution conditions after the voting ends will be cancelled.
Any option that satisfies execution conditions means a successful voting. Defibox Foundation will follow this option for execution. For the date of its release and other information, please follow Defibox Official.
- After the governance proposal is officially announced, it is not allowed to vote during the publicity period;
- Voting will be open after the publicity period ends. Please vote within the valid time.
Thank you for your support and attention to Defibox!
April 7, 2021