No. This is what you wrote:
Farming rewards, as far as I know, are not bought from the market but distributed from the reserve wallet.
This proposal is about what to do with Volt bought from the market with DEX fees.
While:
Of the 0.30% swap fees Voltage is charging, distribute the fees in the following order; 0.25% to liquidity providers, and 0.05% to Volt stakers.
AFAIK, only the staking reward % is used to buy back Volt.
âThe fees accrued for stakers will be used to perform buybacks of the Volt tokenâ
This proposal is just about what to do with the Volt from those buy backs.
Yes, but again, stakers are not the issue.
Farmers - Can keep dumping at the same rate and still get 0.25%
Stakers - Theyâre the ones holding, but theyâll get their rewards cut from 0.5% to 0.025%
Your proposal is cutting the only incentive to hold while doing nothing to address the dumping.
What makes you think stakers arenât dumping? Many small holders will be staking and dumping rewards rather than risk IL on LPs.
People arenât holding because of APY, people hold because they are holders, or they dump because they are dumpers and want to get back their initial investment early.
Everyone is 10x down on their bags which causes more dump pressure as people try to get back as much as possible and exit.
Do you think 100x ing the staking APY is going to make the Volt price go up? If not, then what?
The proposal is a small change to a small part of the voltage ecosystem that starts to make volt a desirable token to hold as it gains long term value.
Feel free to disagree and vote no.
Thatâs what I have done, I have voted no because it doesnât take this burn part from the swap fees but from the staking part.
I proposed on Telegram to double the part of swap fees used to buyback and then burn half of these doubled buybacks which will keep the same staking APY.
Yes, I agree to that as well.
It increases the burn rate and maintains the staking APY, which should mean all parties are happy.
Additionally, it (if I understand correctly) slightly reduce the farming rewards for LP pools
This is not a reason to take from holders and ignore dumpers. Why didnât you propose taking 0.025% from farming rewards, buying Volt for it, and burning it? This way youâd get your burning, and dumpers would have less tokens to dump. Double win. Yay!
As I wrote earlier, Iâm both a farmer and a staker, but if my staking rewards get cut, it will make more sense to dump my farming rewards for other tokens and to stake those. If the Fuse APY will be higher, why keep the Volt rewards? Even the stable farm might look more interesting.
Whatâs causing the pressure is lack of utility that would drive demand, and the overall market situation. Burns wonât fix neither. The APY doesnât offset the loss of Voltâs value, if anyone wants to exit, it doesnât make sense to keep holding for the rewards.
I never suggested anything like that. Please abstain from using argumentative fallacies like this.
What Iâm trying to explain here is not what to do, but why I consider the proposal to be based on a flawed premise, why I think it wonât be helpful, and how it could potentially backfire.
Not the topic of this thread, but regarding what to do, we need more utility first to drive demand. Not rushing to burning tokens. According to Milligrade (Voltage TG), the team is working on something.
Deflationary doesnât equal desirable. If thereâs any increase in value without additional utility, it will be purely speculative.
I did.
What do you think of Bertrands proposal?
Shifting the source of the tokens from stakers to farmers is what I was suggesting, so yeah, Iâd prefer it that way. Not doubling the rate, but I can live with that.
Overview:
80% of voters were in favour of the proposal to burn 50% of the staking buy back.
An issue was raised that this proposal did not reduce Farming rewards.
A suggestion was made to agree to the 50% burn, but double the DEX fee % used for buy back rewards . This would have the effect of:
This would mean that 0.30% swap fees would be distributed as:
1) 0.2% to liquidity providers
2) 0.1% used as buy back of Volt from the market. 0.05% will be burnt, 0.05% distributed to stakers.
@Elvis.Voltage are you able to confirm point 3 would reduce the farming rewards slightly? Iâm not sure of the mechanism how the dex fees are distributed to LP farming rewards.
If the figures make sense and there is a real reduction in farming rewards, then I would change the proposal to the one in this post - doubling the % used for buy back / staking, and burning 50% of those volt tokens.
Went through the docs and proposals, it will only affect LPs, the fees are accrued in the pools.
So there will be a small reduction in fees distributed to LP holders. This wonât affect most LP providers as they will be Farming, and not getting any of the fees (I believe the fees go to the farming contract - but would like confirmation of this) @Elvis.Voltage?
Currently of the 0.3% fee, 0.25% goes to the lp and 0.05% is used to buy back volt and send it to vevolt.
What you are suggesting is lowering the 0.25% to 0.2% and that 0.05% that is lowered from the lp reward to buy back volt and burn it?
I think is a good idea as long as there is not a major loss in the liquidity on the dex.
I think we already spoke about this, as long as the Burn helps to maintain the order of the token price, weâre always all set and ready to stay active behind the narrative. 