Title: Divert an amount of protocol interest revenue towards the Treasury for bad debt reserves
BIP by: BarryLime
Status: Community Review
BIP Editor: Hill | BendDAO.xyz
At present, 100% of the protocol interest revenue is allocated to veBEND holders. To date, 1,732 ETH have been distributed among veBEND holders.
For more information, refer to the following resources:
This is the time for the community to enact measures to show the strength of the DAO to weather this period. The implementation of a bad debt reserve will help to enhance the BendDAO’s financial stability by providing a mechanism for absorbing potential losses. It is a common practice in traditional finance to have such a reserve, which acts as a financial buffer and provides an additional level of security to the protocol users.
Based on the Discord discussion, this proposal suggests:
- Diverting 50% of the protocol’s revenue until we reach a bad debt reserve of 200 ETH, supplementing what is already available in the Treasury.
- Following the accomplishment of this initial goal, a subsequent vote will be held to discuss whether we should decrease this allocation to 25% or 10% until we accumulate a reserve of 300 ETH or another agreed-upon amount.
The next course of action is to determine the initial allocation percentage for this proposal. The first phase of the target reserve size will be 200 ETH as the community discussed.
- Divert 50% of the protocol’s revenue
- Divert 25% of the protocol’s revenue
- Divert 10% of the protocol’s revenue