CIP - draft: Should CoW introduce veCoW incentives and a revenue source?

[defiparasite]

@prometheus

If we remove all voting power from COW why do we need a token at all?

$COW will still be the only tradable form of the token and the only way you can produce $veCOW. This approach worked fine for CRV and BAL.

@prometheus

This proposal fixes selling pressure from vested investors creating an arbitrage opportunity (selling tokens at market price and buying them back to the Treasury at discount) and creating more vesting for people that missed out.

I think you’ve misunderstood that part. There is no discounted $COW tokens sold. Only discounted $veCOW tokens (i.e. locked tokens). The discount is necessary when selling locked tokens and incentivized only the long-term thinking investors to buy. There is no arbitrage opportunity as we’re talking about 4-year lock-ups.

@prometheus

Meanwhile, without the Team and Solvers, this DAO wouldn’t exist.

I agree with you. Solvers will be paid 100 $COW per winning settlement, though, to cover their costs and would be greatly benefited if we alleviated some of the $COW selling pressure.

@prometheus

introducing a revenue stream also means more selling pressure from that stream. It works exactly like the

I don’t think we should be giving out $COW rewards to $veCOW holders. A Gnosis safe that is controlled by the COW DAO for instance converts all significant token balances to $ETH. It would be more natural to pay rewards in whatever token we keep (or convert) our balances in.

@prometheus

The discount can help but it only works if people can buy/hold enough tokens to get the discount and considering how things are, people need to buy/hold 100,000 Tokens to get a 20% discount. Even if price drops to $10cents it means people need to invest $10k to get a 20% discount. Is that appealing?

The discount was a good idea to capture users and alleviate selling pressure that I introduced in this forum first. The problem is that we don’t have any revenue to continuously fund it, and we’ve only allocated 60 $ETH that will only cover us for about 3 months. The tiers could be more generous (i.e. require fewer tokens or provide higher discounts) if we had a constant source of revenue to fund them with.