HIP#4 - Upfront governance for NFT holders

HIP#4

Abstract : This proposal offers Honey Genesis Bee (HGB) holders the opportunity to burn their NFT to receive their future yields as vote escrowed HONEY (veHONEY) upfront. Additionally, HGB holders who burn their bees will receive a brand new NFT, Honey Beekeepers.

Objective : Give NFT holders a larger and more representative say in the DAO early on, instead of waiting to receive the entirety of their emissions over ~ 10 years. This offers holders a larger amount of rewards shared across veHONEY holders such as potential revenue redistribution, yield, and bribes. The goal is to focus the team’s efforts on providing value to veHONEY, and ensuring NFT holders have fair access to veHONEY.

Description : HGB NFTs are currently set to receive half of the entire DeFi protocol’s liquidity mining and emissions, equivalent to 75,000,000 $HONEY. However because these rewards are distributed over a long period of time, they result in IDO participants having a disproportionate share in the DAO relative to NFT holders.

By burning their bees, HGB holders receive their half of all protocol emissions upfront in the form of veHONEY.

Example: Because bees are supposed to produce $HONEY for 10years, HONEY would be minted upon burning the bee, and locked for the remainder of the 10 years, with an even % unlocking every year. This means $HONEY earned per year from a bee is does not change. In the meantime, their veHONEY allows them to earn a greater share of the rewards. These rewards can include revenue sharing, bribes from other protocols, boosted yield in pools, airdrops, and anything else distributed to veHONEY holders.

This places a greater emphasis on veHONEY, ensuring that all community members have a weight in the DAO relative to how long they vest their tokens. It realigns all incentives, and focuses the team’s attention towards providing value to veHONEY.

This burning mechanism also ensures that as demand for bees and their yield increases, their circulating supply decreases.

Governance details : This HIP#4 discussion will be up on the forum for 7 days. Feel free to discuss modifications to this HIP, to be included in a redacted HIP#4.1 . If no significant changes are added, then the vote for HIP#4 will commence on Sunday September 25th 2022 and last a total of 7 days. If approved, previews of the Honey Beekeeper NFTs will be shared with the community leading up to the burn event.

14 Likes

I love the proposal!

Would like to hear more about the “Honey Beekeepers” NFT. What is its utility? Access to DAO? Feels like thats all it should have, since you get the governance and the $honey emission from the veHoney you received upfront!

Thank you!

2 Likes

Yes the beekeepers are currently a bonus on top of the veHONEY. They will become important as the devs introduce more experimental features into the platform.

5 Likes

i love it :smiling_face_with_three_hearts: , this is a GAME changer for HGB,in Tom we trust :heart::blush:

3 Likes

Love HIP4 and the idea behind!

Question for me is the laser eye bees. Same veHoney they worth or any future benefit? Thats the only rarity “system” what bees have. Most of the true belivers sniped some - wondering whats the plan with them!

I am very much in favor as long as we can get even a little better glimpse into the beekeepers utility. I truly believe it will happen but without gaining any VeHoney and bribes/rewards what will allow for the new NFT to have value along the same as the HGB’s? Overall i like where this is headed

1 Like

As i know in the very beginning, the team told us ALL BEES are the same.Rarity doesent matter. The Laser eyes are only for flex.

Totally forgot about the experimental features! Would they just apply to Beekepers NFT or to the regular HGB NFT as well?

Looks great. Trying to understand the dynamics:

  • HGB is burnt and will receive veHoney equivalent for 10 years staking of 3.750 (or 5.616 if HIP #3 passed) $honey, which would be returned to the owner on a 10 years schedule, 10% per year.
  • The “Honey Beekeepers” NFT would still have the ability to be staked in order to receive the remaining 3.750 (or 5.616 if hip #3 passed) $honey through 10 years.

Is this right?

I love the idea, I would be interested to see the plans for the Beekeeper NFT. increased royalties when staked or the ability to stake royalties would be interesting utilities.

What purpose does HONEY have? Seems like veHONEY is all that matters.

Is HIP 4 a proposal to kill off HONEY? I’m confused why HONEY even exists when veHONEY is what will determine rewards from the protocol.

We should just kill off HONEY for veHONEY.

I think this proposal is a result of community’s call for greater returns. Assigning coins upfront rather than over 10 years doesn’t make any difference until and unless we work towards better adoption of our protocol. So, if NFT lending picks up on the protocol we’ll create value for our tokens instead of just having a boatload of token sitting in our wallet with no liquidity. As a community we need to find avenues to bring in lenders-borrowers of NFTs to our protocol. If we manage to do that - we don’t need to think about these things.

HONEY is needed to create veHONEY. Since veHONEY is time weighted governance, it represents how much capital you have at stake in the protocol, and for how long. That capital you have stake is HONEY, veHONEY is just a representation of how long you’re willing to lock up that HONEY.

So they both work in tandem and can’t exist without the other.

For all those asking, yes we do have plans to bring utilities to the Beekeepers. There are many creative devs on the team who want to experiment with these NFTs.

But right now it’s best not pitch it as a utility NFT and instead as a PFP for our community to use and represent the project.

Sounds like a good plan.

cool project i like it

What do you think about allowing people who hold X number of beekeepers or HGB to borrow at lower or 0% interest like how FRAKT does for Gnomies holders (e.g., 0% interest on up to 500 SOL for holding 100 Gnomies)?

I’m pretty strongly opposed to offering these kinds of benefits, which add risk into the protocol and segregate users. We offer the best rates possible across all our users, if we feel it’s responsible to add 0% loans, it’ll be available to everyone in the ecosystem.