I would like to put up a 4th proposition for the Onyx Community to consider. This proposal combines the best features of the 1st and 3rd proposals.
Proposition #4 suggest the Onyx Protocol focuses on its XCN DAO to help the exploit as well as leveraging on the Onyx Capital Facility. The mechanisms of the proposal:
The DAO would reduce the staking rewards to a floating 20~25% APR, which are currently at 40%, thus decreasing inflation of the XCN token staking by over 20%. (A more modest reduction in inflation to keep competitiveness)
The DAO would reduce the APY modestly in the money markets of the v2 launch to make yields more sustainable and lower XCN inflation (Keeping it competitive with other protocols). Reserve factors would be increased so that protocol revenue would accumulate. These revenue will fully go into XCN.
The DAO would pause all the current lending markets and wind them down. The DAO would take a snapshot of user balances and calculate them in a public open post, which includes wallet addresses. To add on to this, instead of the protocol revenue, allow the DAO to use the DAO Treasury and the Onyx Capital Facility to make compensations to the affected users. Instead of a full 3 billion XCN at one go, split it into 25% each month. (25% Dec, 25% Jan, 25% Feb, 25% March)
These mechanics combine the most valuable parts of Proposals 1 and 3 to get a substantially improved outcome.
It decreases XCN inflation modestly while remaining competitive with other protocols.
Lower inflation will give traders more confidence improving XCN’s value
XCN would have reduced overall selling pressure, as it is spread across months and possibly even less XCN would be required to be sold due to the continuous bull market.
It enables XCN DAO to continue operations and the development of a future V2 Onyx.
The entire revenue of Onyx can be utilised for advancing XCN, which improves the perception of XCN’s value.
It ensures that affected users are compensated
The benefits of proposal 1 where confidence and trust in the team are also embedded in this.
Overall this proposal takes the best of proposal 1 and 3, ensuring user are whole, the protocol can work again in confidence and and that XCN can run up alongside the broader market bullrun.
Will we get the snapshot of the tokens supplied then get the quantity of supplied assets or just the snap shot value of the asset.
Example: i supplied 666 linkeroo. Snapshot taken, i get 666 linkeroo paid back.
Or snapshot and get huge impermanant loss by receiving dollar value of asset instead of actual asset that was stollen.
In an ideal situation, you would get back ur supplied assets. But MINIMALLY you would at least get back the total dollar value that you had in the protocol.
In Proposal 4 advocates for a more moderate decline in inflation for XCN to ensure Onyx’s future competitiveness. - Increasing the attractiveness of XCN
In Proposal 4, all revenue will be directed into XCN, making it a self-sustaining protocol and increasing value for investors - increasing XCN appeal
In Proposal 4, it makes use of the Onyx Capital Facility to ensure that users are truly made whole, instilling faith and trust in Onyx while having lower selling pressure - increasing the desirability of XCN
These are the primary differences that place XCN in an appealing position while also instilling confidence and trust, allowing it to progress further and faster.
The positive aspects of every proposal should definitely be taken and implemented. I recommend that the supply of different coins and tokens be open. It would be nice to keep different investors on the platform. Not everyone is an Xcn investor, there are different investors as well
As a community, we can make the 4th proposal the best version by making additions and subtractions based on the results of the 3rd proposal. What everyone wants is to implement the absolute best offer and to look after the interests of the Project and the Community.
We will be waiting for the results with impatience. It is really good that every suggestion is taken into consideration in order to develop and become stronger together.
I would love to hear all suggestion and inputs for proposal 4 and we can discuss them, I hope to make the best optimum solution in Proposal 4.
But I do stress that Proposal 3 NEEDS to be rejected to be able to move to Proposal 4. So I hope the community can help vote against proposal 3 and create a optimum proposal 4. Thank you
Either way, i have been engaging with community and i am participating in voting. The whole thing is just a big dissappointment because i have been actively participating since 2022. Chain seemed solid.
So the dollar amount would be like 99% impermanant loss.