Yay to the updated version. I back and contributed to this proposal.
1 Like
As promised:
My Support for 2nd Round Farm Proposal
I began making my voice increasingly more public about abstaining all farm proposals on 11/04/2020. I would have began earlier if I knew how abstained. Now I am supporting this farm proposal. This is my explanation as to why.
For the numbers people out there, we only have 6 farming pairs for data points. There is no way to make a purely predictive analysis with 6 data points on an equation that has well over a dozen variables from the price of ETH to the reliability of the xdaibridge when the farming proposals were executed. Some liberties were taken intentionally.
Background
Issuance can impact accessibility, price, and engagement/usage of the project/product. Considering we have several HNY supply routes to the community the intent isn’t to drive the price down with all this HNY but to indirectly drive the price up through growing adoption. Can adoption be gained without issuance? Yes probably, but while diluting the holders typically will result in price going down it in theory provides opportunity for accessibility, this can be a good thing. With price going up you are strengthening the current holders but you are beginning to restrict access. Do we need to use issuance as a control for price or for the spreading and accessibility of honey? The answer I believe is both, we need issuance to control price while achieving our goal for adoption. How do we control the price of honey while still continuing to grow the community through issuance? *Put it very simply you just need demand to be larger than supply and in theory it doesn’t matter what your supply is if demand is greater. Earlier today a 2nd round of farming proposal was drafted. I among others support and contributed to this proposal. Below is the outline of my decision
Farming is the current method we are using to incentivize liquidity and token adoption on honeyswap. I am not going to debate that.
The question is:
- How much liquidity do we need? $100M-$200M /24hr in liquidity
- This was done by looking at liquidity on Uniswap when they were starting to pick up adoption
- Given ~$150M liquidty this provides us with with apprx. 35 tokens with >$1M each in liquidty
- $1M liquidty is ideal for worse case slippage fees any lower liquidity and adoption is unlikely
- This provides us opportunity to ‘target’ the microtrader
- What is maximum HNY we can use for farming and begin seeing a rebound in price? Max 300HNY/mo
- If we keep our maximum supply of farms below 300HNY/mo we should see price rebound. Consider this is a 60% decrease in farming. 300 may seem like a lot but it is still a huge decrease from the current 720HNY a month.
- My estimation are estimations found here and are not perfect. One major consideration is demand is not static you don’t need a 1 for 1 reduction in supply to offset demand. You only need a portion of the supply to be cut off to incentivize demand growth
- Which farms should we incentivize?
- We should have more funding towards non-HNY pairs than HNY Pairs
- Market Leaders were overwhelming desired over network pairs, reddit pairs and others
- How many farms
- Total of 10-12 farms were desired by polls
- Data showed we wanted to keep HNY pairs rewards should be max 90HNY & non-HNY pairs max 75HNY
- Data in same post showed that we really needed more data points in the sub 100HNY rewards to improve our future decisions.
Given the above findings we went with the following:
- 160HNY (+100HNY pending to expire) – this is 140 below target maximum of 300 (remember the big 3 farms of 600HNY expire today)
- 17 total farms – we went a little heavy on this one in my opinion but this will give us a lot of new data to make better decisions for next month
- 6HNY pairs vs 11 non-HNY pairs – we are pretty Flipped on this but as pointed out below But I don’t believe this will break the proposal
- Market Leaders v Network Pairs v Reddit – we kept pretty true to the desired ratios by the polling community
I believe this will grow adoption, rebound HNY price, and provide us with a tremendous amount of information to make an even better proposal next month.
4 Likes
Hey man, I just want to correct you on one thing, the poll you keep referencing shows that the community PREFERS HNY pairs to non-HNY pairs.
I support the proposal that we’ve made here. I do wonder though if we can mine data from other farming projects fro future farming proposals, rather than just focus on data we can produce ourselves, which will take a long time and maybe always be sparse. uniswap itself and sushiswap in particular would be good case studies with fairly rich data.
@befitsandpiper Oh wow, big miss by me. I probably need to sleep more. The poll rearranges by highest to lowest support. When they rearrange it moved the bottom one to the top and I think that threw me off. Good catch. I wonder if I was corrected multiple times during the discussion and just missed it. A big apology from me.
I tried to look at sushi swap for data but I can’t find the historical farms listed anywhere and I am unsure how to get that data. Good idea if it can be done
1 Like
Btw, @Blazar, we’ve been calling the ren Zcash token wZcash in discussions, but it is actually called renZEC.
We are trying to find a happy medium and it would not work. It is very low for hny pairs and wont attract new people. my 2 cents!
Hello lovewins 
How would you change the list? I think there are plenty of HNY pairs listed above. Just curious!
@lovewins the proposal is just shy of a 60%/40% split in favoring HNY pairs.
When link-hny, wbtc-xdai, weth-wbtc expire depending on how this proposal plays out it would be nice to renew the two wbtc farms at 50% reward. Any ideas of what to replace them with that might pair up better for a HNY pair?
Would like to see an xMOON/xDAI pool. It (xMOON) has been a staple to this exchange and brings a lot of attention from reddit. Even a smaller amount would be a nice gesture as many of the redditors are early honeyswap adopters. xMOON/HNY isn’t really utilized much by people buying/selling moons.
Imo stake/hny farm should be the same as xdai/hny. Xdai ecosystem consists in two tokens so thats my reasoning.
my proposal:
xdai/hny 30
stake/hny 30
eth/xdai 15
stake/xdai 15
1 Like
Hny not used by moon holders is the point for that pair. It will still provide liquidity to xdai sense hny-xdai is the largest pair. Tbh hny-moon is probably better for avoiding Imperment losses. I would rarely invest in a crypto-stable coin pair. Your are almost always gonna get wrecked by IL.
@farmerD I think your splitting hairs, the proposal is very close to what you’d like to see. I personally would like to see all the snx,rezec, omg BW paird with HNY instead of xdai but it is what it is. If it’s close enough go with it so we can get some more data to make it even better next time.
1 Like
This proposal is not passing due to contention among HNY holders on the size of this proposal, as well as on the particular pairs chosen. There seems to be decent consensus that the HNY-XDAI pair at least should be funded since this provides price support for our community token, HNY.
How would we feel about instead doing a breakdown like this at first?
XDAI-HNY - 40 HNY
XMOON-HNY - 5 HNY
XBRICK-HNY - 5 HNY
DONUT-HNY - 5 HNY
For a total cost of 55 HNY. This would still leave us with about 100 HNY which we can deploy later in the month if we see good results, support HNY price, and also be able to be shilled to reddit to bring over new community members.
Thoughts? If we like this idea I will create a new proposal and support it. It should be easier to pass, and we may be able to get a few additional people onboard who are on the sidelines rn.
4 Likes
I dig it, what’s the harm in starting small? As was said before we cannot substract HNY from the farms, but we can always add to it even if it’s ongoing. I think it’s a good idea to incrementally add more, see on a small scale first how farms would affect us. Easier to pass, and less risky, sounds like a good plan to me! About the pairs, not sure personally, as we are attracting from reddit I do think it’s smart to get them onboard. What is the reasoning for 40 HNY on the XDAI-HNY pair? Couldn’t we for example go with 20 and have the other 20 allocated to some other pairs that are listed above, which are potentially interesting? E.g Eth/HNY,Stake/HNY or BTC/HNY
1 Like
There’s more support for the HNY-XDAI pair, even from some farming skeptics, because it’s important to have a way to exchange HNY.
It sounds like the consensus in discord is continue on with the current proposal to see if it passes
We should be coming up with better ideas together as a community to distribute HNY as an alternative to feeding the vultures.
I don’t want to vote to keep making pools and handing out HNY to vultures.
The price will keep getting dumped as everyone farms.
An alternative idea I have:
Your HNY rewards are fed to you through the Faucet and drip-fed over 90 days.
I would rather have a rolling 90-day drip feed of HNY rather than everyone farm and dump every day which is whats happening.
E.G. If you farmed 1 HNY in a day, you receive it incrementally via your faucet, over 90-days going forward. In this scenario, it would be less harmful to have farms available for everyone. The message is clear: If you want HNY, you join the community and commit for 3 months at a minimum.
We should also be considering plans to implement staking of HNY onto the platform. Your staking amount should give you a Voting contract as well, so you can both stake and vote at the same time on the platform. With this, there is incentive to hold HNY even more.
HNY is obviously meant to be a low supply token that everyone respects, and we have exhausted the Liquidity Pool scheme.
We should be also considering to hold competitions for artwork, memes, youtube videos, and give prizes out for HNY there
5 Likes
Beautiful, couldn’t have said it better. Brilliant ideas.
1 Like
I agree. We would like to incorporate some of that in phase 3 jan1 farm proposal but those changes couldn’t be implemented fast enough and we also didn’t have enough data to make substantial changes other than reducing from 720hny to 160hny and secondly the types and amounts, instead of 3 big farms a bunch of diverse farms with some key triangulation pairs that support the network
If we got a team together today working on those proposals it would be 3 days minimum to roll out a proposal likely closer to a week then another round of votes adds another week before that is possibly passed. We were hoping for a go live after uni farms expired and before our last two farms expired
while i think this proposal is fine, I would rather something more focused and less contentious would be up at the same time. I have created another focusing on what I believe are the core pairs Updated Round 2 Farming Proposal