Finished

JBP-105: Increase JBX Bonding Curve to 95%

Author

Anon

Cycle

16

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Author:

@Mr. Goldstein @V J

Proposal date:

2022-02-03

Summary:

  • Since the inception of JBX, the bonding curve helped retain and reward long term stakeholders in the community while providing DAO members the ability to redeem their ETH contributions with an elegant exit option.
  • This feature is highly valued by the community. Something that can be seen through the ~50 ETH redemptions occurring since the bonding curve was updated to 70% in FC 12 vs. total redemptions of ~50 ETH between FC 1 and FC 11.
  • The existing JBXDAO treasury of ~5K ETH is extremely healthy. It gives the JBXDAO both a decade of operating capital (assuming $1.5 annual burn rate and no revenue) and allows it to explore additional flexibility with the bonding curve.
  • Updating the bonding curve to 95% will further incentivize short term members to redeem some of their initial contributions, while retaining ample operating capital for the DAO.

Motivation:

  • Stakeholder alignment - incentivizing DAO members to redeem ETH for their JBX through the JBXDAO (vs. AMM) focuses the narrative on long term stakeholder alignment
  • Increasing flexibility - providing the existing user base with the mechanism flexibility that has been successfully utilized by the community
  • Strengthening the JBX ecosystem - increasing the relative strength of the ecosystem by reducing the overall tokens in circulation and increasing the Treasury / JBX ratio

Risks:

  • Unexpectedly high redemption rates can significantly decrease JBXDAO overall treasury thus shortening the operational runway of the DAO and any flexibility the DAO might have with capital deployment towards yield generation or grants programs.
  • Mitigants:
    • JBX will continue to generate more revenue to cover costs and accrue value to the treasury (did $420K of fees in January)
    • JBX will continue to raise more funding in future funding cycles at 6x the redemption price

What changes should be made to the redemption rate bonding curve?

Bonding curve to 95%.

Rationale:

Updating the rate to a relatively high number of 95%, but still leaving another leg of update if needed.

Sponsors:

Community members who agree to act as spokespeople for this proposal can add themselves here.