$BLAST governance over Gold distribution

Gold Feedback
1

Executive Summary
Blast token holders should be able to partially govern regular Gold distributions over the Phase 2. This helps to decentralize decision making process and gives the token irreplaceable utility for users, investors and apps. It also prevents from capital leaving Blast ecosystem.

Motivation
With current state of Blast, there is no incentive to hold capital on Blast anymore (about 4% yield in 12 months) and since there is neither incentive to hold Blast token, the chain may enter a death spiral, where low yield leads to capital leaving, which creates sell pressure on token and that lowers yield and causing more capital outflows.
There is a way how to fix this while getting closer to the endgame of community governance over the chain and also aligning interests of users, apps and token holders.

Proposal Details
I propose that Blast token holders should have 50% of voting rights regarding gold distribution. Token holders is anyone who holds $BLAST token and their voting rights are proportional to the amount of tokens they hold.
This excludes all locked and unvested token holders.

The remaining 50% allocation stays in the hands of Blast Foundation.

(50/50 governance distribution between holders and Foundation is a first draft and we can discuss in this forum what allocation is the right one)

Implementation
This proposal would be implemented by creating a separate smart contract where users can sign in with their wallet and deposit Blast tokens into. Afterwards, they can “vote” with these tokes by distributing them across apps as they like to.

Half of the gold distributed each month is based on proportional allocations to these apps. The other half of gold is distributed by the foundation.

Once gold distribution happens, allocation to apps are given back to accounts of depositors (so all apps start with 0 again) and users can vote for next gold distribution.

Associated Costs
There is a fixed cost for creating the SC and whole system + auditing and then very little recurring cost for maintaining the SC.

3 Likes
2

I like the idea in general, but as we all know the sentiment was already heavily in favor of “whales game” and having using many apps, I can say that was very truthful. Not all of them! But quite a few of them.

So, while I agree (rather than leaving to one/few brains) I also feel like the largest holders could collaborate and easily enough give out more Gold to those dapps who reward the whale type tvls or otherwise.

imho fwiw ofc. :sweat_smile:

1 Like
4

This is true, but with this dynamic also apps have an incentive to hold Blast in their treasury, even VCs invested in these apps have incentive to hold Blast tokens to boost distribution for “their app” and boost activity on t.

This creates distribution of power even among whales

1 Like