[RFC] - Infinite veHONEY supply

Abstract
Propose to allow the supply of veHONEY to be infinite and never burn HONEY. You could vest the same HONEY over and over again to produce veHONEY as its emission. Think interest from a savings account.

This proposal may already be the case, and if so, let’s make a FAQ instead and close this RFC.

Objective
Give HONEY a lifetime involvement and incentive to “save” for vesting veHONEY (the real magic).

Description
HONEY is the only way to produce veHONEY right now. I propose that remains the same, but we allow HONEY to be reinvestable each period (6, 12, 24, 48 months as previously mapped out). Following the example below:

Example: Vest 10,000 HONEY for 4 years to produce 10,000 veHONEY up front with a 1:1 ratio. In 4 years time, that HONEY is released from its lock and can be vested again for 4 years for a further 10,000 veHONEY. This can be repeated ad infinitum.

This keeps HONEY in the game, and ideally, in a veHONEY savings pot. Encouraging a healthy HONEY market.

As mentioned, this may already be the case and a nod in that direction should close this RFC. Otherwise, I welcome comments to take this forward as a HIP.

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veHoney is not retained at the end of the lock period.

That’s fine. Not sure where that fits on the above RFC, but I imagine veHONEY is in constant use.

Meaning that it wouldn’t be a function of the system for veHoney to be infinite. It also would be dangerous from an inflationary standpoint and I wouldn’t recommend

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I’m sorry, I’m not following, veHONEY cannot be traded (not a token) afaik. I’m missing the inflation point in that regard.

Inflation point aside, I don’t agree with the idea of making veHoney infinite.

I don’t seem to understand this. Looking at your example, what you are proposing is that if I vest my 10,000 $Honey for additional 4 years, I should have 20,000 $veHoney instead of 10,000 $veHoney?

I’m suggesting the same HONEY can be reinvested again and again every 4 years for example. Effectively netting you 1:1 veHONEY every 4 years.

For what I understand that is possible since always. Once your $Honey gets unlocked you can vest it again for the same amount of $veHoney if it’s for the same time.

Could very well be already the status quo. Added a caveat to suggest the same. If it, this can be closed.

I don’t like the idea of infinite VeHoney. If we can continually create new VeHoney, it’s value has to go down over time. Or, at least, the demand for VeHoney has to outpace the supply increase’s inflationary pressure in order for the value of VeHoney to go up. Couple with the other RFC, it might then be a better proposition to buy NFTs and stake them for immediate VeHoney, reducing the necessity of bribes. I think we want to force people to need our VeHoney, rather than give them an option to create infinitely more.

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I think something being overlooked in this proposal based on the ve system is that you do not continue to hold the veHoney at the end of the lock period. ‘Ve’ means voting escrow, or put differently, it’s the governance token you hold that represents the honey you put in escrow. When the honey is released from escrow after the applicable lock period, you automatically give back the corresponding veHoney (very simplified for purposes here). What this post is suggesting is to treat veHoney fundamentally different as a dual purpose governance AND emission token. That very much is a possible outcome, just want to make sure folks understand that it would be a fundamental shift in the underlying tokenomics. Given the success of the model vis a vis Curve wars on ETH where the model was developed, it’s unclear to me why we should make such a drastic deviation. As alluded to above, infinite supply will constantly put downward pressure on value and is bad monetary policy.

I get your point, and my proposal is badly worded in that case.

I understand that veHONEY doesn’t outlive the HONEY it escrows. I’m proposing the exactly same HONEY can be staked over and over again to produce a new batch of veHONEY over and over again. From what others are saying, that looks to already be the case. Should HONEY lose its ability to stake for veHONEY, it has no use which thinking about it couldn’t be correct. In short, is this proposal already in place @tom ? If so, I’ll close this RFC as a long winded FAQ!

Got it and, in that case, yes Honey can be revested after it is released from escrow and aligns with how the current system would operate. That preserves value in Honey as the exchangeable token, so you could lock it up now, sell it, someone else can lock it up later, etc.