Future mining incentives in different pools and chains (BSC)

Proposals
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This post is for discussion on how to distribute the mining incentives in different pools and chains (BSC, etc)

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As previously discussed on this post, some options are proposed for the halving of FNX incentives in the future. But before deployment on snapshot for voting, another important topic that needs to be discussed is how shall we deal with the new pools or new chains integration in the future like BSC, which has just been passed by the community voting yesterday.

Here is the plan for discussion.

  • Incentives on new pools or new chains shall not undermine the current live pools’ incentives;
  • Initial new incentives shall be granted for the new pools or new chains from the community reserves by community voting;
  • There can be a trial period for the new pools to attract enough liquidity, e.g. 2 months
  • The new pool’s incentive shall apply a similar halving plan as previously discussed and to be decided by community voting;
  • After the trial period, the new pool’s incentives (the basic mining incentives) will be merged with the ‘old pools’ incentives. And the distribution of the mining incentives as the respective basic mining incentives in different pools will be adjusted according to the TVLs.
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Specifically for BSC incentives, the basic ideas are the same as discribed here, except:

  • The basic mining amount is 15000 cFNX/day for 2 months, as the trial period;
  • After 2 months the basic mining amount will be reduced by half to 7500 cFNX/day and merged with the current total basic mining in the other ‘old pools’. Therefore, the total basic mining will be 17500 cFNX/day. The allocation in different pools including the BSC pools will be adjusted according to the pools’ TVLs.
  • In the future, the total basic mining halving will follow the plan to be decided by community voting.
  • The longest lock-up period on BSC is 6 months with a multiplier as 6x.
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So is the FNX token on BSC going to be bridged (as opposed to a new completely new token)?

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It will be bridged with the same FNX token.
We previously came up with some ideas to issue sth like BFNX there. But we think this one is not ready for discussion yet and it will not be good to issue new tokens on other chains for now. Plus, it will bring negative effects on potential listing on exchanges.

FNX is the sole token for now and we shall focus on FNX to capture more value for the holders.

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I agree it should be quite generous at the beginning. Just two questions:

  • Will there be Pancake liquidity rewards as we now have for Sushi? I think there should be as it attracts a lot of attention and demand for the tokens involved.
  • What pair will be supported for staking? FNX-BUSB, FNX-BNB or something different?

To make it all clearer, I think the steps should be synchronized. In your calculations, you already count that the mining rewards for the original pools are halved when they are merged with the BSC pool, which is fine, it only needs to be clear. It seems to me, though, that this plan only works for halving the original pool starting in April. Because otherwise, let’s say the BSC pool starts on 1 April, the USDC+FRAX pools rewards halves in June to 10k cFNX and it is merged with halved BSC pool to jump back to 17.5k cFNX, pretty much de-halving the rewards. And unless the BSC pool TVL is decent compared to the USDC pool (BSC pool will have a maximum boost of 6x) , it might be problematic for the overall inflation of FNX. Now I don’t know if I got it all correctly and I also don’t know what your expectations about the BSC pool TVL are. It should attract more capital than the FRAX pool, anyway.

And as for synchronization, it should be clearly stated that the pool rewards will be rebalanced/reweighted with respect to the pools’ TVL every first day of the month (or every 2/3/4/etc. months) starting 1 Apr/May/June/July/etc.

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I agree.

  • we need to incentivize the liquidity providers on Pancake, like on Sushiswap. I suggest we can try with the same incentive in the beginning.
  • The incentive on BSC and other chains should be synchronized, but not necessarily in the beginning. The first two months will be 15000 cFNX daily and halving from the 3rd month, from when it will merge and synchronize with the other pools.
  • Leveraged token pools may come later and will follow the same principle in mining.
  • We have faith that TVL on the BSC pool will outnumber the current ETH pool.
  • We suggest to make the adjustment of mining allocation from 1st May on pools apart from BSC, and adjust on every 1st day of each month.
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Do you think the TVL on BSC will be new liquidity or do you anticipate draining of existing ETH liquidity due to the temporarily higher APR on BSC before the incentive merges?

For the May 1st mining allocation adjustment do you mean just the AMM liquidity providers or also to the FPO mining?

Do the mining incentives affect the various proposed options we will be voting on regarding halving timing?

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  • I believe TVL on BSC will be new liquidity.
  • I personally prefer the mining allocation adjustment on the 1st of May for the FPO mining (USDC/USDT, FRAX, and pools on Wanchain), then including BSC from the 1st of June.
  • Halving time will be the general plan for all the FPO mining only, not including the rewards for AMM liquidity providers
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