- Apply half of the current 50% reserve rate from all governance pools to a buyback of POOL tokens which is then dripped to the POOL pool. (25% of total interest accrued by each pool)
- Turn off the current POOL drip to the POOL pool as it will be replaced by the buyback.
Since the recent successful treasury diversification we are in a good position to use some of the revenue brought in by the pools and apply it in a form of revenue sharing to POOL holders. This revenue sharing will start small and grow as the pools grow. I believe the addition of revenue sharing will add utility to the POOL token which will increase price and therefore increase the APY on all pools.
This PTIP will do the following.
- Remove current POOL drip of 100 POOL per day and replace it with POOL purchased in a buyback.
- Buyback to be funded with 50% of the 50% reserve rate taken from governance pools (25% of total weekly interest earned).
Community approval of this PTIP will allow Pooltogether developers to begin work on a buyback/revenue sharing program benefiting POOL holders. Once the work is complete we can submit an onchain vote to finalize the change.
- Adds POOL token utility as POOL holders can now essentially receive a revenue share.
- Retains 36,500 POOL tokens annually that would otherwise be paid out directly from the treasury.
- Based on todays numbers the USDC, DAI, COMP, and UNI pools alone would be able to buyback 1107 POOL tokens this week which is more than the current 700 per week drip. We have many more pools coming and expect to continue to grow our existing pools. As the pools grow the revenue grows, as the revenue grows the demand for POOL grows, as the demand for pool grows the APY to depositors grows as a result of price growth. Everybody wins at the Poolside bar.
- Increased APY as a result of increased POOL demand will help facilitate further reductions in POOL distribution and maintain great APY.
One of the arguments I have heard against this is that depositors are somehow losing money from the cut Pooltogether takes in the 50% reserve rate.
USDC depositors are earning x 3.5 what they would earn if deposited onto Compound.
DAI depositors are earning x 2.88 what they would earn if deposited on Compound.
COMP depositors are earning x 3.39 what they would earn if deposited onto Compound.
UNI depositors are earning x 9.95 what they would earn if deposited onto Compound.
There is no loss happening here my friends.
I believe this proposal has shown strong enough support in previous polls to warrant a PTIP. Evidenced in this survey below as well as others.
This change will require some work from the Pooltogether development team but shouldn’t be overly complicated. This cannot go to onchain and snapshot vote until work has been completed.