Proposal: Defer BAL rewards purchasing during pumps

I propose to formalize a rule whereby BAL rewards purchasing, which supports the long term price of XTK, may be - in the discretion of the team - paused by one week whenever at the regular time of purchasing the price of XTK has pumped by at least 200% compared to the price one week prior. This rule could be repeated without limit, e.g. 4 consecutive weeks of pause if each week the price pumps by at least 200% vs. the prior week.

This will give the team flexibility to ensure that purchasing efforts avoid periods of extreme price volatility in a direction that will support XTK in a common sense way that is consistent with long term XTK holders.

Most of the controversy around such a pause seems to be from the decision being made on an ad hoc basis. This proposal seeks to formalize the discretion exercised by the team for the benefit of long term XTK holders.

2 Likes

Thanks for this proposal. I definitely understand the hesitancy by the community to move away from automated scheduling, but as we scale over the next year, there could be certain situations where discretion is warranted. Support some discretion, but would probably lower discretion bound to say 100%. Wouldn’t expect much of these anyways, and if it became a more frequent issue happy to revisit. We all like higher prices but ideally this won’t even be an issue.

3 Likes

There are elements of simplicity and reliability to the schedule of BAL rewards being used to support the XTK/ETH ratio. I favor the current approach because it is more minimalistic from a governance and decision-making overhead perspective.

2 Likes