Distribute 50% (or other percentage) of fees received from SmartYield at the end of each quarter to holders of $BOND who stake in the DAO and to those who participate in voting for that quarter once the DAO BOND rewards are exhausted.
This proposal is aimed at providing continued incentive to hold the $BOND token and participate in governance following the exhaustion of BOND tokens that have been set aside as rewards for those who stake in the DAO. These fees could also be distributed in addition to the BOND tokens as an additional incentive.
Where a project or protocol’s tokens provide only voting rights, there may be a tendency for only those holding a large number of tokens to actively participate in governance. This would result in a reduction in the value derived from functioning as a DAO similarly to how a low voter turnout is quite undesirable in conventional elections. In such situations, there is the risk that decisions taken by the DAO are not truly representative of the wishes of the community.
Further, incentivizing staking of $BOND would reduce circulating supply and provide upward pressure on the price of the token.
Since the aim of this incentive is to encourage participation in governance, it would be payable to those who participate in staking and voting via the following mechanism.
- Half of all fees collected by the SmartYield product would be set aside each quarter to reward those who participate in governance.
- 20% of these collected fees would be paid as rewards to all those who staked in the DAO during that period. This can be paid either through the epoch mechanism or the continuous payment currently employed by the DAO.
- 55% of the collected fees would be shared amongst all those who participated in voting. This would be an equal reward for every voter.
- The final 25% would be paid to voters based on their voting power employed in the various votes.
The percentages can be adjusted subject to community consensus ahead of voting.
- Greater governance participation to avoid DAO votes not reflecting the will of the community.
- Added utility for the BOND token which would increase perceived value.
- Incentive to stake which would reduce availability and hence increase BOND value.
- Reduces revenue that is accrued to the treasury.
- Added complexity.
- Low priority in the short term.
- Unnecessary doubling of rewards if implemented alongside current DAO rewards.
Where applicable, post a link to the proposal if it has already been created in the governance app.