I mentioned that a solid token economics cannot live without a supportive secondary market activities because lack of liquidity of BOT prevents people from entering into or exiting the BOT token economic realm. In a decentralized financial way, we have provided liquidity to BOT’s uniswap pool. In a centralized financial way, I want to say thanks to OKEX, HUOBI and other centralized exchanges for listing BOT to give more people access to BOT.

Now, we have more than 2300 addresses holding BOT and I think we can start the second phase of the token economics, which is more interactive with secondary market liquidity. There are two ways of interaction:

First, over the past month, we distributed transaction fee staking rewards in ETH and the reason is that the uniswap liquidity pool was too small that using transaction fee rewards to market buy BOT would cause huge price flutuation. Now the pool has a decent liquidity and I think it makes sense to distribute rewards in BOT. The accumulated transaction fee rewards in ETH will be used to market buy BOT through uniswap and staking rewards will be distributed in BOT. When you claim staking rewards or unstake, your available transaction fee rewards in ETH will market buy BOT at the instant time and you will be awarded BOT. This will happen through the smart contracts and you will trigger the market buy when you click claim staking rewards button or unstake button. The team does not hold transaction fee or buy BOT for stakers.

Second, many people have complaint about the distribution of daily BOT rewards distribution mechanism. I admitted that distributing daily rewards only through mining ignore the other parts of the token economics. So we will divide daily reward distributions into different sections and the percentage of allocation to each section can be adjust by governance parameter voting system. To begin with, the daily reward distribution will be divided into
1. Mining (number of valid transaction per cycle), which will share 60% of the daily rewards.
2. Governance voting, which will share 20% of the daily rewards when it is live.
3. Uniswap liquidity provider tokens staking, which will share 20% of the daily rewards when it is live.
(Before governance voting is live, the 20% governance allocation will still be distributed for mining)

While governance voting reward was discussed in the previous blog, I want to talk more about uniswap liquidity provider token staking. As many experienced defi users have used, you will receive uniswap LP tokens automatically into your wallet when you contribute to a uniswap liqudity pool and the LP tokens represent your share of liquidity in a pool. There will be a uniswap section under bounce token for staking uniswap LP tokens:

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  1. Provide liquidity to BOT’s uniswap pool: https://uniswap.info/pair/0xE444f079e8f69ee32b2707974b5c994Fa7DD944A
  2. You will receive UNI-V2 LP tokens in your wallet.
  3. Go to https://bounce.finance/ and choose uniswap under bounce token section.
  4. Stake your LP tokens and you will start to earn staking rewards.
  5. The staking rewards will be distributed to stakers using the same mechanism as the transaction fee staking, and the total staking rewards per day will be 20% of the daily reward.The staking rewards are calculated based on the equation:
    R = T * X * (Y/604800)
    R = The amount of your staking rewards at time t
    T = The total amount of staking rewards in the staking pool at time t
    X = The percentage of your number of staked BOTs in the pool at time t
    Y = The time interval (in seconds) between your last rewards claim and time t
    604800 is the total seconds for 7 days
    (20% of the daily reward for Uniswap LP token staking will be distributed through each second)

As I said, this is a framework I build and it can be adjusted by governance when it is live. Governance can vote to add or delete these functionalities and change parameters such as daily reward distribution. Transaction fee staking rewards are now paid in BOT, and the uniswap LP tokens staking will begin soon and I will make announcement through twitter and telegram.

Have a good weekend!

An experiment. Decentralized Auction. Swap or get bounced.

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