wBTC Divs Temporarily Paused

18 June 2022

RE: OTC Pool Vote (from May)

Dear Axionauts,

As we roll out our plans towards our vision, laid out in March of this year; one of the things spoken of was the importance of building up an OTC pool.

In line with that plan, we gave our community a vote on new Accelerator ratios that would be required to start funding the pool.

Further information about the necessity for the OTC pool can be read in James' article here: https://axion.network/news/dao-votes/why-the-axion-otc-pool-is-so-important 

There were two options given in the community vote:

Option A : 65% buybacks/ 20% OTC pool / 15% Foundation / 0% divs

Option B : 65% buybacks/ 10% OTC pool / 15% Foundation / 10% divs
- Option A burns more AXN than option B
- Option A gives less dividends than option B
- Option B gives more dividends than option A.

To compensate the pause on Wbtc dividends we would give liquid AXN dividends as a temporarily replacement once the OTC goes live.

- Option A builds up the OTC pool quicker than option B


To compensate the % reduction of Wbtc divs we would also give AXN liquid divs to stakers once the OTC goes live.

- Option B burns less AXN than option A
- Option B will require twice as much volume as option A to build up the same amount in the OTC pool


The result of the vote was:

Option A : 72.5%
Option B : 27.5%

Here are the results if you missed them: https://stake.axion.network/vote/0x8616f47343d8f3fbf7ceca82dde382864ca943d58112cb6a01d40316f8757699 

The new temporary Accelerator ratios were introduced which results in:

- Buybacks : 65%
- OTC pool : 20%
- Foundation : 15%

These ratio changes are of course not permanent. We would like to have them in place for at least 2 - 3 months (still to be decided) at which point we will reassess the situation letting you guys know about the progress we’ve made.

Once have accumulated enough to make the OTC pool viable in operation, we can then restore wBTC divs for our community.

Appologies for the lateness in getting this update posted to the website. The vote results were posted internally to the community but until now, not posted to the website.