Title: veBANK - Value Escrow BANK - (DRAFT 1) - TEMP CHECK
Date Created: August 28th, 2022
Date Posted: 9/9/22
- BANK distribution currently doesn’t have any mechanisms that align contributors long term to the DAO.
- This creates scenarios where value attributed to the token (airdrops, etc) are dropped to general holders, as well as long term contributors.
- veBANK would create an additional BanklessDAO token that would enable adding time as a component to the token and would support long term contributor alignment.
- By locking up BANK for a period of time, locked BANK indicates long term alignment with the DAO.
- This could be used for value accrual, and potentially could become the standard for L1 membership, voting and more.
- The following proposal aims to raise awareness and explore potentials and opportunities for veBANK while proposing a minimal viable implementation.
- Based on discussion, we will develop future proposals and implementations.
- Additionally, this MVP once completed, will be free to be adopted by projects, both internal and external, as a value accrual mechanism of BANK and BanklessDAO.
This post is to propose and raise awareness around the creation of an additional BanklessDAO recognized token, value escrow BANK or veBANK. This token will support long term contributor alignment while giving the DAO tokenomic infrastructure to enable future opportunities around BanklessDAO governance and other options and utility.
veBANK adds time as a component to BANK, which when locked up, supports and identifies long term value aligned contributors to BanklessDAO.
This initial post is meant to generate discussion and identify parameters for a future proposal that will fund the development of the veBANK token.
Long term options could be for veBANK to be the core BanklessDAO governance token, as well as the token that has benefits and value accrual to it.
Specs on veBANK are that it would be a 1-1 deposit and claim on BANK, for different time periods. It would also, debatably, be a non-transferrable token.
We are planning the initial implementation to be a test of 6 months, and closely watch how it is used and adopted. Upon a successful implementation, we will roll out longer time periods including, 12, 18 and 24 months.
KEY POINT: veBANK will NOT have BANK distributions to it, at the current design, nor will it grant additional voting privileges or rights (YET).
As we work on and improve tokenomics at BanklessDAO, our core operative is to keep the system running and do as little harm as possible, so implementations take time.
BANK has been used as a compensation token for BanklessDAO, and is distributed regularly to organizational units(Guilds and projects) and contributors for work performed at the DAO.
Currently the token is held for governance rights for the DAO, speculation, deposited in defi platforms for yield or as collateral, or sold for other assets.
Alternatively, veBANK, or value escrow BANK, would allow adding time as a component to the token to indicate long term alignment to BanklessDAO, both as a contributor or speculator.
This creates downstream opportunities in that the longer term aligned members could accrue larger benefits, or be selected by other communities for benefits or distributions.
Currently, the benchmark for value accrual to the BANK token is in the form of L1 membership (holding 35k BANK). When value opportunities arose, we have had different parties buy up BANK, to obtain the value, then sell BANK off.
With veBANK, we have an easily identifiable group of value aligned, long term contributors, for which the value accrual of the DAO can go to.
For example, DAOpunks required 35k BANK to mint a DAOpunk NFT. This created significant buy pressure before the mint, then sell pressure post mint. veBANK could be used instead as the token which would require holders to be aligned to the DAO for 3,6 or 12 months to be able to mint. This would have alleviated BANK sell pressure, and had DAOpunks held by quality DAO members and contributors.
- 1-1 Deposit and Claim - 1 BANK = 1 veBANK + Time
- Time locks
- 6 Month - Initial implementation
- 12 Month
- 18 Month
- 24 Month
- Non Transferrable - IN DEBATE
This is the current implementation plan, and fully subject to change.
- Engage the Dev Guild to create an veBANK token.
- This would need to be scoped out and a forum proposal submitted and approved, then funded.
- Engage the Website Team to implement a front end for the depositing of BANK for veBANK.
- Engage Snapshot admins to support veBANK for voting.
- Engage Discord admins to support veBANK amounts for L1 membership perks.
- Engage Operations, and DAO wide information distribution to ensure that outside parties accrue value to the veBANK token.
Initially the tokenomics department was working to solve the problem of L1 membership with veBANK, but found the challenge to be a larger challenge along with implementation of veBANK.
As we worked on the idea, projects found out about the initiative and started to plan for it, so instead of attempting to solve the problems from top down approach, we are planning to make the token and infrastructure available so projects, guilds and the DAO can adopt as makes sense.
Beyond value accrual, with veBANK available as a token infrastructure, many new possibilities open up around governance. Some of the ideas that the Tokenomics department have thrown around are:
- Requiring veBANK to sponsor a project for funding
- Requiring veBANK to vote on governance
- Requiring veBANK to obtain project benefits
- Requiring veBANK to participate in Guild governance
- Require veBANK for coordinape
- Get a coordinape multiplier if you have veBANK
- HAVING AN NFT THAT LEVELS UP AS YOU RE-LOCK YOUR BANK <-!
- Proposal already in development
- This is a really fun and easy way to accrue social capital and see OGs in the space.
- HAVING AN NFT THAT LEVELS UP AS YOU RE-LOCK YOUR BANK <-!
This is where we can have a lot of fun with ideation, and I do hope people share ideas in the comments below!
Please share your thoughts, opinions and ideas
Quick poll to gather sentiment:
- Sounds great - Lets go!
- Needs modification