BUNNY SUPPLY NEXT STEPS!
Hello Bunny Fam! 🐰🐰🐰
It feels as though just yesterday our TVL was still under $100M! Thank you, each and every one of you, for staying with us on this incredible journey. Your amazing energy and enthusiasm have rocketed us to over $7B in TVL in only 2 months!
A Brief History of the BUNNY Supply — Managing Explosive Growth
As our TVL went parabolic, it became necessary to focus on scaling our ability to provide 24/7 support so that we could serve our rapidly growing Pancake Bunny family at all times, all around the world. To recap:
- When we launched the project last December, Pancake Bunny rewarded users with BUNNY at a rate of 10 BUNNY per 1 BNB.
- Within 3 months, in keeping with our original milestone schedule, we proposed (and the community passed) a vote to reduce BUNNY emissions by 50% to 5 BUNNY per 1 BNB.
- In early March, as we planned for the next BUNNY supply milestone, we saw indications that our TVL was beginning to go parabolic.
- As a result, we put a temporary hold on our plans to further restrict the BUNNY supply and directed our focus towards scaling our ability to support the rapid expansion of the Pancake Bunny community.
BUNNY Supply Next Steps — Growing BUNNY Value
Team Bunny is proud to report that we have achieved the scaling capacity that we need to serve the growing Bunny community, as demonstrated recently by our BSC-leading performance during the Venus and Pancake Swap migrations. And so we are now able to return to the problem of how to further restrict the BUNNY supply.We propose to restrict the BUNNY supply initially in the following ways:
1. Reducing the Fixed Rate of BUNNY Emissions. First, in the near term, we propose to reduce the rate of emissions significantly to 3 BUNNY per 1 BNB, down from today’s fixed peg of 5 BUNNY per 1 BNB.
2. Dynamic Minting: Introducing the Floating Rate. Subsequent to reducing the fixed emission rate to 3:1 (and the completion of Cross Chain Collateralization!), we propose to develop a dynamic minting mechanism that uses a Floating Rate Emission (FRE) function. The FRE will emit:
a) an amount of “basic” BUNNY rewards at a floating rate based on the relative market value of BUNNY and BNB, plus
b) an amount of “bonus” BUNNY rewards emitted as a constant percentage of the “basic” amount.
The FRE function ensures that when the value of BUNNY increases relative to BNB, less BUNNY is minted. Similarly, when the relative value of BUNNY decreases, more BUNNY is minted.
Example: Suppose that, at the precise moment you claim a profit of 100 BNB on Pancake Bunny, 1 BNB is worth 2 BUNNY on the open market. Suppose further that the FRE “bonus” BUNNY percentage has been set at a constant rate of 25%. Then, when you claim your 100 BNB worth of profit you will receive:
1. 70 BNB (= the basic amount of BNB equal to the first 70% of total profit) +
2. 60 BUNNY (= the “basic” amount of BUNNY calculated at a floating rate of 2 x the remaining 30% of total profit) +
3. 15 BUNNY (= the “bonus” amount of BUNNY equal to 25% of the “basic” BUNNY amount) for a total of
4. 70 BNB + 75 BUNNY.
In contrast, at today’s 5:1 fixed rate of emission, you would receive 5 x 30 = 150 BUNNY. And at the proposed reduced fixed rate of 3:1, you would receive 3 x 30 = 90 BUNNY.
3. No-Loss BUNNY Pots. Team Bunny is currently developing no-loss BUNNY Pot pools as a fun way to fund the reduction of the BUNNY supply. In no-loss BUNNY Pots, users stake their BUNNY for a chance to win the profits generated by the pool. When the winners are declared, everybody’s stake is returned to them so that there is no loss, and a portion of the proceeds is used to buy back or burn BUNNY.
Example: Suppose there is a Bunny Lottery Pool in which the winners win 90% of pool profits, and 10% goes to the Community Treasury to buy back or burn according to community vote. (The percentages in this example are for purposes of illustration only. Final percentages will be determined and proposed as development proceeds.)
4. Other Mechanisms. Team Bunny is currently considering a number of other buy back or burning mechanisms, but they are not ready to be proposed definitively to the community at this time. For products like Cross Chain Collateralization, we will need to examine the data after we launch before we will determine whether and how to use a portion of cross chain returns to buy back or burn BUNNY. Similarly, Team Bunny is also studying different implementations of lottery products and prediction markets, but a determination of their final design and whether to propose them to the community to buy back or burn BUNNY will depend on the results of the regulatory diligence that we are currently conducting.
THANK YOU BUNNY FAM!
As always, Team Bunny is grateful for your enthusiasm, positivity, and support. We hope that you have found this post to be useful, and we assure you that we will be ready to present another batch of buy back or burn mechanisms as soon as they are ready to share.
We know that you have been concerned about the BUNNY supply, and we thank you for your patient understanding these past two months as we have focused on supporting and sustaining our massive rate of growth.
Thanks to our operational focus, our transparency, and our positive partnership with you, the community, we were able to execute the Venus and Pancake Swap migrations seamlessly and efficiently, setting the standard for quality of service on BSC along the way.
And as we look ahead to the many opportunities for partnership, listing, and cross chain expansion that lie before us, we are excited to take the next steps in our Defi journey together with you.
Onwards and upwards, Bunny Fam, and remember — What time is it? It’s SA:FU…TIME FOR BUNNY!
Welcome to the Bunny Community. Join us on our Defi journey!
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