Bancor Community Call | June 6, 2021

Defi Eagle

Published on: 07.06.2021

Bancor introduced summary of community call with ecosystem and development updates.

🔹Governance Update (0:50)

This was an interesting week due to the massive mobilization from the Bancor community who wanted to preserve the Liquidity Mining Rewards for ETH/LINK/wBTC/stablecoins. These were overwhelmingly reinstated after most of them failed to pass their votes last week.
This is a welcome reminder for community members to stay involved in the DAO. If you find yourself becoming apathetic, there will be some actors out there who might try to take advantage of that fact.
Many whitelisted tokens were added last week including: SUSHI, 1INCH, LPL, CREAM, OPIUM, SMARTCREDIT, QUICK
It’s helpful when they have Bancor community members active in these other communities to keep an eye out for questions about providing liquidity, impermanent loss and to answer questions about Bancor’s core features or even to point out to that community that their token has been whitelisted.
These guerilla marketing efforts through Discord and Telegram are highly impactful, not just in bringing new members to Bancor but to expand the partnerships that Bancor can develop.
One brightspot of our increased governance activity was seeing Mark Cuban, the billionaire entrepreneur, identify himself as a new BNT holder and as a participant in DAO.
The DAO has made excellent decisions recently, including the whitelisting of WOO which has been one of Bancor’s most performant pools, bringing a lot of revenue.
10% Vortex burner rate was passed by governance, while 20% burner was voted down.
This is an increase from the existing rate of 5%.
In short, 10% of swap fees generated from all trades are placed into the burner wallet. These fees are then used to purchase vBNT which are then burned.
Remember that vBNT is only created when BNT is staked in the platform and it is created at a 1:1 rate with the staked BNT.
Therefore, each vBNT that is burned means that one BNT staked in the protocol can never be unstaked.
This is a permanent deflationary event.
Burning vBNT literally reduces the available BNT supply but also retains that same BNT in the protocol, allowing it to continue to act as liquidity and earn fees.
When vBNT price is low, the burner event purchases it at a discount and therefore burns it at a faster rate, allowing us to lock more BNT in the protocol more efficiently.
Unlike many token burning schemes in crypto, burning vBNT has a direct effect on BNT scarcity and price.
The Snapshot UI has been updated and allows vote delegation natively.
There is a new page on Bancor’s discourse to allow users to nominate themselves to receive vote delegation.

🔹Developer Update (17:50)

Bancor V3 progress is going very well!
No additional details are available right now but they believe that V3 will be as transformative as V1 was when Bancor introduced the concept of liquidity pools to crypto.