Proof of Balance // Fee buff
Hello there,
after posting couple of my Ideas I thought - Why not put it all together in one big post as it sticks pretty good together.
Let me start with the Fee Buff
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The more percent you have at the stake, the fewer fees of Burn / Buyback you pay.
As an example, I hold 10% of stake xy I pay 10% less fee - example - 1% fee / 10% reduce = 0.9% fee.
Or milestones in TVL - If I hold 100,000 USD/Pacoca in stake I pay 10% less fee, same example as in previous invoice. If I hold 250,000 USD/Pacoca in stake, I pay 25% less fee.
I think it would be an attractive system where both sides win - the staker having the incentive to stake more and keep more to himself and Pacoca being staked more the gain is greater.
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Proof of Balance // AMM
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So people want more burn, for more burn the Pacoca Fee’s have to be changed - Here are my 2 ideas
Pacoca AMM
Pacoca creates an own AMM and uses those fees for a Pacoca Burn - Quite simple idea.
Proof of Balance
This could have two ways:
Pacoca vs Other Stakes/LP-Pools — or — Stake vs LP-Pool
— Example —
Stake TVL 1 Mil. // LP-Pool TVL 1 Mil.
Burn 5% // Buyback for higher APY 5%
Stake TVL 1,5 Mil // LP-Pool TVL 500k
Burn 7.5% // Buyback for higher APY 2.5%
Same way for Pacoca vs Other Stakes/Pools
Pacoca Stake / LP-Pools TVL 1 Mil. // All other Stake / LP-Pools TVL 1 Mil.
Burn 5% // Buyback for higher APY 5%
Stake TVL 1,5 Mil // LP-Pool TVL 500k
Burn 7.5% // Buyback for higher APY 2.5%
This only works if we start to put Fee’s on all Stakes / Pools to provide Balance.
That said - It would be a step into an inflationary/deflationary direction.
If the Pacoca pools were holding more TVL than the Non Pacocs pools then the burn mechanism would benefit from this but the APY would be lower - the amount earned would be less but the value would increase - deflationary.
If the non pacoca pools held more TVL than the pacoca pools, the buyback would be greater and the burn less - the amount earned would be higher, but the value would decrease - inflationary.
So if Hodler were going for a burn, they would automatically start staking more and more into the Pacoca pools and neglecting the non-Pacoca pools, which would increase the natural APY of those pools with fewer providers themselves, which in turn would encourage people to stake those LPs. In addition to this, one would benefit from the revised fee system - holding more % of the stake/pool I would pay fewer fee's - so it would be stimulating to stake more than the others.
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ADS ON PACOCA
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The main page of Pacoca still has a relatively large amount of "space" available - why not use this space and let other coins do advertising like Poocoin and the income could flow into the burn. With a certain stake size of Pacoca, users could bypass these ads with Pro status.
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