[ Discussion Panel ] Making 1inch Tokens ULTRA - USEFUL!

2.1 General Proposals
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Deflationary Burning Mechanism of 1inch Tokens inherited with an Advance Usecase :briefcase:

Revised 1INCH Tokenomics Upgrade : The Next Phase

Note : This is just a Rough Summary . I don’t want the Post to be Very Lengthy , Just a little Idea you can get with it what it is all about

1. “Claim Reward by Task” Mechanism [ Applicable for Buyback & Distribute & Farming ]

In Short , Whether it’s from LP Farming or via Governance Staking users will have to Complete Certain tasks to claim their 1INCH Rewards . Check Rough Idea - 1INCH Governance REWARDS v1.0

How it’ll be useful -

  • Creating Tasks will Help rewarding Active Users Against Passive Users
  • More Participation in Governance Tasks e.g. Snapshot Votings etc.
  • Liquidity Boost if LP tasks are Enabled
  • Indirect Increment in Trading Volumes of DEX Across all chains

2. Deflationary Burning Mechanism with an Advance Usecase [ A Trigger System ]

When we say Burn it’s Pretty obvious what it’ll be . Many Projects Deploy diff type of Methods to initiate Burning of their Native Tokens .

  • Charging Deposit/Withdraw/Performance fee , Transfer Tax , BuyBack & Then Burn a %age of it
  • Burn Token to keep the Inflation in check which is great for No Hard Cap tokens
BNB burning event

When the Binance Coin was still part of the Ethereum network, Binance performed periodic Coin Burn events using a smart contract function known as burn function . The BNB burning events are scheduled to occur every quarter until 100,000,000 BNB are finally destroyed , which represents 50% of the total BNB ever issued (200,000,000 BNB).
The amount of BNB coins to be burned is based on the number of trades performed on the exchange within a 3-months period.
So after each quarter, Binance burns BNB according to the overall trading volume.

So What Exactly is a Trigger System ?

Whenever 1INCH DEX achieves a certain criteria , System will Trigger a Burn Event . This Trigger System can be considered a collection of Multiple Factors , once attained can automatically Trigger the Burn Event .

Triggers -

  1. 1INCH users Trading Milestones
Summary

Trading Milestones will depend on :

    1. Total Trading Volume of a User w.r.t to the 24hr Volume on 1inch DEX
    1. Trading Frequency = No. of Swaps made on daily/weekly/monthly basis by User
    1. Amount of a Single Swap
    1. 1inch Record Breaker [ NEW ]
    1. Trading Streaks
    1. Trading Combos [Trading LPs Directly]
  1. 1INCH DEX Overall Trading Volume
  2. We can add more ...

& Now Everytime 1INCH sets a New Record Under Point 1 & 2 , Trigger System will Activate the Burn .

Supply Reduction - DAO Shall decide by Snapshot Voting How much Supply [30%,40%,50%,60%] Must be Reduced from MAX supply of 1.5b .

Also After Every 10% Burn of Total Supply , Burn Trigger System will go under A Cool down until DAO redecides above criteria/parameters again .

3. Double Stable-Coin APY on DAO Treasury [Auto/Restake Partition/Farm]

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The Idea is to Restake the APY earnings to Higher APY Projects so that Rewards can be Maximized . Also , Part of The APY reward generated can be used to Buy a collection of Top Tokens that Provide High APY on Single Asset Staking like Cake of Pancakeswap .

We can Vote thro DAO on how much part of generated APY revenue must be used to buy such coins with high APY

This Approach is generally Safe as our Principal Amount is safely being used in Top Tier Lending Protocols while the APY generated from that can be utillized even further in Higher APY projects .

The Blend -

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New Fee Structure Implementation on Top of Reward Claiming

| Optional

I’ve Added Another Point if we should do it or not . Currently there are 0 Fee over Staking , so should we implement such Structure over ‘Claim Rewards after task completion’

Fees can be embedded into 2nd Point under ‘Claim Reward’ Before Claiming Rewards which will be auto deducted

Should be Voted As I don’t want it to be posed as an extra burden over the users using 1inch like BANKS or other DEFI projects

if user don’t complete the task he will have to Pay Performance Fee

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If Implemented can create another source of income for the protocol

Keep in Mind that the Fee %ages Shown in picture Will Have a Weightage Decided in a Ratio of 40% by Instant Governance + 60% by 1INCH Founders or Team. This Creates an equilibrium

Also As @deacix said already that it’s bringing Huge Load to maintain DAO so I think we can also charge once a Quarter or an Year as a Performance fee proportion to the amount of token staked or may be only on the Claim Rewards

On chain Data -

On-chain data reveals, nearly 40 percent of those tokens have been either swapped or transferred to a centralized exam within 24 hours. Within a week, that rate has jumped to nearly 50%, and after 90 days, as we can see in the data below, 36.3% of tokens are considered “kept.” More than a quarter of these tokens, meanwhile, have been swapped for other currencies, with others being transferred to centralized exchanges.

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TBC …

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Thank you for building!
i support this Big salad！

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Controlled Burning Deployment Procedure -

Current 1INCH Total/Max Supply - 1.5 Billion

Reducing Supply by Removing - 0.5 Billion [ Suggested / Voted ]

After Burn Total Supply will be - 1 Billion

PART A

Burning X Million Of 1INCH Total/Max Supply × Y Times = 500 Million TOTAL

  • Burning 125 Million 1INCH Supply × 4 Times … (1)
  • Burning 100 Million 1INCH Supply × 5 Times … (2)
  • Burning 10 Million 1INCH Supply × 50 Times … (3)

Note : After Every X Burn , A Cool - Down will start UNTIL DAO Governance Revaluates & Redecides If Burning should Continue or not thro Voting .
e.g. From … (1) " × 4 Times" Means that DAO has the Chance to start Voting 4 Times

Part B

from (1) , We can do this Burning in 2 Ways :

Burning 5 Million Tokens × 25 Times Or 1 Million × 125 Times

From (2) , We can do this Burning in 2 Ways :

Burning 4 Million Tokens × 25 Times Or 2 Million × 50 Times

From (3) , We can do this Burning :

Burning 0.4 Million Tokens × 25 Times

Part B is Connected to Trigger System That We Discussed Under Point 2 in " Revised 1INCH Tokenomics Upgrade : The Next Phase"

Now , if we use "5 Million Tokens × 25 Times: from above Part B ,
Then 5 Million of 1INCH tokens will be Burned on each Trigger Until We Burn 25 × 5 = 125 Million of tokens

Once 125 Million Token Burn Target reached , Cool - Down will Happen & DAO voting will start .

Repeating the Process until 0.5 Billion of Total Supply is Wiped Out

It’s 4 times So It can be ideal for next 4 year because of 4 year Vesting & the Token Inflation from that can be controlled . With this Burning , each year we can burn a total of 125 Million tokens & After 4 Year vesting Completes , by that time we’ll have 1 Billion Total Supply only

JUMP

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Hi @Genkai.Shogun, sorry if I missed something, but it is not clear to me where the burnt token would be coming from. Would those be tokens that have been bought on the market using protocol fees and accumulated till a burn event is triggered, or are you thinking of burning tokens from the not-yet-circulating supply?

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Nevermind, I just saw your post here, so the tokens burnt would be market-bought with protocol fees in case the community decided to go with option 2 suggested by k06a here.

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Hey Brother ! You’re right ,That’s The Idea …
But Actually I don’t think you even need to do a Market Buyback for a token burn . They can simply send tokens from multi - sig to a black hole address or annihilate it by other methods .

Like The Gas Refund that 1inch just rolled out . I think we can do same with burning

Like Part - A , 3rd option

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We have deflation proposals + token economy = we need formal proposals！ :cowboy_hat_face:

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I believe most of community will agree burn 0.5 Billion as well , but in realistic I guess 1inch team are not interesting to do this . And olso in past few snapshots we couldnt even pass 4M voted .

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Thanks for confirming. The later option is was triggered my question in the first place. I could support a burn mechanism using protocol fees to market-buy tokens, like what MKR is doing (though I would be more in favour of keeping the current mechanism that funnel the rewards to the stakers for now as we are still in the very early days of the DAO and this is a good way to incentivise long-term commitment).

I personally don’t think burning tokens from the multi-sig would be a good idea for two reasons:

  • Those tokens are fire-power for the DAO and can be use to finance the growth/development with things like grants, gas refund as you mentioned, subsidising liquidity pools in the AMM to attract volume, etc.
  • Distributing those tokens to the community in some form helps widespread the ownership of the protocol whereas burning them reinforce concentration into the hands of the largest holders
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True ! I’m also against the Random Token Burn but If the Burning is accompanied with a Strong usecases like depicted with few points in my previous posts such as Burn Event Getting Triggered When 1INCH DEX Volume Breaks Certain Record etc. or like If that Point 3 of DAO Having a DIP in its Stable APY .

These are the things that Will Trigger the Burning events rather than just doing plain token burning .
Plus We’re not doing Token Burn Relentlessly but it’s controlled by DAO & performance of 1INCH DEX & if at any point DAO thinks that No More Burning is Needed it’ll be Depreciated anyway thro Vote .
This is Why I included several stages of controlled burning .

With Triggered & Controlled Burning we safegaurd our investors & hodlers & Stakers !

With Each Vesting Period comes a bit of Inflation & All Liquidity Pools & Governance Staking might put a Little Bit of Sell Pressure over 1INCH .

As I said earlier if the Token Burning is done with a Trigger System & in A Controlled Fashion it can pose lots of benefits

The Burning is Quite a disputed Topic actually & I get your Point that Burning Will Increase the stakes of Largest 1INCH Hodlers instead of Directly benefiting the Gov stakers .

But We Shouldn’t Forget the Fact that If Anyone Holding 1INCH they actually become 1INCH customers indirectly as by holding 1INCH they believe in Token & thus Believe that it has Potential alongwith taking the risk of holding a Volatile Asset

So , Kicking 'em out of the equation may not be a good idea IMO

& Like I said Burning is not EVIL depending on the way & the intention behind it …

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In general, burning is good for all items.Regardless of the process, the result is good

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My point is not so much about benefiting any group of Gov stakers, small or large, but about supporting one of the key goal of a DAO which is decentralisation through a widespread ownership of the governance token.

Nevertheless, very much appreciate you suggesting all those ideas :slight_smile:

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You shouldn’t forget that even after Burning people who got 100 tokens will have 100 tokens & they’ll vote in Snapshots as 100 token weightage like they did before burning .

Also , It’s Already been 9 Months , So Much time for people to actually buy , care & vote in Governance

People were given enough time & now it’s time to reward those that HODLING 1INCH then & Now . & That Include Staker & Hodler etc.

Are we doing Burning solely for Price Appreciation - NO
Are we doing Burning solely to increase the Power of Current Stakers & Hodlers & rewarding them to stay with 1INCH thro this Whole time of Market Turbulence ---- YESS

The People Who now need to buy/hodl 1INCH must pay more than the people that bought 9 Months Ago .

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Agree！ time is up！
we need fight for real love 1inch people！

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Instant Auto - Top up Features once ETH balance falls below a certain threshold

DEMO by Gelato -

1INCH Actually Worked on such kind of Feature in
ETHDenver & ColoradoJam 2021

image
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Special Discount for using 1INCH Tokens used as a Payment in Short Live Reels Concept

1x.ag - Leverage Aggregator SUMMARY

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Multi LP Collector/Distributor | MLP :volcano:

Problem -

Currently there are Over 1000 Pools that are currently sitting on 1INCH on ETH & BSC chain .
Getting to these pools is easy as you can search them thro the UI but Providing Liquidity even into 5 or 10 or more can get really hectic .

Solution -

A Functionality where a user can search & select Liquidity Pools for Once & Can provide liquidity to them all in just 1 click - like for 10 more pools at once . The Process can be done in batches to make it even gas efficient & fast .

Not only we can Provide Liquidity in Multiple Pools at Once , we will also be able to Collect all the earnings collected from 10 to 50 Pools at once without going thro each pool .

We Can go even Further with this Approach & Provide an Auto - Harvest Function which will Automatically collect all the fee from his all selected LP pools & will send it to your Wallet or will Convert that collected Fee into Specific tokens decided by users over specific Time Intervals decided by the user like collect all LP fee after a Week , after a month etc. .
To disable the feature he has to sign a Tx. again or Alert Via notification too

Pros -

  1. Automation Making Life easy of LP providers
    2. Bootstrapping More Liquidity as such Functionality is nowhere to seen yet
    3. Gas efficient & Fast process

LP Providers are the Lifeline of DEFI

Without them there will be no AMM ,
Without AMM there will be no DEX &
Without DEX there will be no Aggregator .

Whoever take care of LP providers will have the Upper Hand in DEFI Game !

JUMP

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I haven’t seen you for a long time! Thank you for your continuous contribution!
Why didn’t the team take any action?

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Hey @flare . Thanks for Caring . Really Appreciate it Man ; )

As far as the team is concerned I think they do read & test 'em in the background
But from what I’ve seen so far their hands are really full .

I’m surprised that Ideas that we’ve shared in this post are being Utilized & implemented in other projects that are fresh & out there in the Wild .

No Doubt I’ve really High Hopes from @deacix @k06a

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keep moving! I heard that there is a big organization to invest 1inch in the recent.They should have more business needs.

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Thanks for your contributions. we need you :blush:

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