General Updates and Staking Proposal (10/30)
It’s Time For Another Change
Our community members are suffering. The price isn’t working. This system isn’t working. We know that we have tried a few different things to fix our issues, but the reality is that we have yet to find success. Accordingly, it is time for us to make a MASSIVE change.
We hear our community’s concerns over the price of DRC and its lack of performance. We also know that everyone is looking for something to do with all of the DRC they have farmed. The community wants DRC staking pools, so we propose that we give them just that.
Two Staking Pools
We propose instituting two DRC staking pools. One of them, the “Horde” pool, will receive DRC as its reward. The second, the “Feasting” pool, will receive ETH as a reward. The ETH will come from victim drains and should easily serve as passive, steady income for those who wish to join it. Both of these pools will have a DRC burn mechanism that will occur on unstaking. The purpose of this burn is to increase the deflationary component of our project in order to add to DRC’s scarcity. We suggest a 1% burn rate for this burn, but, as always, will leave it up to the community.
What We Envision
We believe that these pools, should slowly replace the DRC/ETH pool. This represents a fundamental shift in our philosophy as a project: the goal is to amass DRC for staking and preservation, rather than for farming and selling for profit. Holding, in short, will be incentivized. A shift away from LP farming will also allow our community members to avoid the impermanent loss that has plagued them since this project’s inception.
We know what the knee-jerk reaction is to a shift away from LP farming, though. “What happens to liquidity? If people will receive lower rewards for providing it, how will this system remain sustainable?” The answer, our friends, is fairly straightforward: we propose to use ~40–60% of the ETH rewards from Dracula Protocol pools for buyback & provide liquidity mechanism. For permanent and growing locked liquidity, instead of the pure buyback-burn system we currently utilize. This should resolve all issues we could face with liquidity and stabilize the growth of liquidity in our ecosystem.
Here is an example of how this would all function:
The protocol generates 10ETH. 4.5 of that ETH goes to buyback DRC and burn it. 5 of the ETH serves as permanently locked liquidity — 2.5 will buy DRC and the other will remain as ETH, both will be locked in the system forever. The remaining .5 ETH will be sent to the Feasting pool to serve as its ETH rewards. From a numerical perspective: 45% goes to DRC buyback and burn, 50% serves as locked liquidity, and 5% will be recycled for rewards.
We hope that this proposal excites you as much as it does us. We believe that this fundamental change will significantly aid in the stabilization of our ecosystem and will make DRC a much more attractive project for newcomers.
We will be deciding the fate of this proposal via snapshot. Snapshot will serve as our temporary medium for governance until further notice (or until the community expresses they wish to see a different form). Your voting power is proportional to your DRC holdings. The quorum for a vote — 10% of DRC supply.
The snapshot for this proposal can be found here: https://snapshot.page/#/dracula/proposal/QmXyNV11kxNvSwCPyoCfpNxMMdeqgu4JRtbXc8TKQyEvkU
Please expect more news to come. It’s only the beginning. As always, stay tuned, and stay vampiric.