Based on Fernando’s input about Blabs’ existing constraints to meaningfully pursue Optimism deployment and maintenance within the next 2-3 months (perhaps longer), this idea becomes a no-brainer.
BeethovenX’s cost structure goes beyond the 3M BEETs (team, advertising, business development, tech improvements etc.) so another model without Balancer giving up too much on revenue upside would be:
50% of protocol fees up until OP TGE,
50% of protocol fees for a full year after OP TGE,
25% after.
I believe Optimism will execute the Avax/Polygon playbook to attract major liquidity via DeFi incentives and possibly utilize Airdrop 2 to boost valuations before TGE. Some back-of-the-napkin year 1-2 revenue projection to put things into perspective:
Year 1 - 50% Revenue Share:
Balancer TVL on Optimism: $500m.
Annualized Volume: $12b
Annualized Protocol Revenue: $24m
veBAL Holders’ Share: $9m
Balancer DAO Share: $3m
BeethovenX Share: $12m
Year 2 - 25% Revenue Share:
Balancer TVL on Optimism: $750m.
Annualized Volume: $15b
Annualized Protocol Revenue: $30m
veBAL Holders’ Share: $16.875m
Balancer DAO Share: $5.625m
BeethovenX Share: $7.5m
Given Fantom’s existing metrics after the Andre & Anton drama and solidex implosion, I think it’d be in BeethovenX’s interest to take whatever deal is on the table. 3M BEETs bribes will work up-to a certain 7-digit TVL but beyond that it will be veBAL holders’ bet on Optimism ecosystem that will truly decide Balancer success on Optimism.
Given the resource constraints of bLabs, the excellent track record of Beets & the opportunity created with the OP launch, I’m 100% in favor of moving forward with a collaborative effort.
@mike’s proposition of having a 50% protocol fee share until the 3M BEETs are recouped and switching to 75% BAL / 25% BEETS from that point + opening the floor for a new alignment sounds like a good starting point to me.
If we also move forward with a $1M token swap, BEETS will also be able to benefit from the value created for veBAL holders and will have solid influence (>2%) on where BAL rewards are directed.
Hope we can find alignment soon and get this going
Appreciate Mike and everyone chiming in to the discussion. I wanted to write a quick update to say that the prospect of a future adjustment to the revenue share has been discussed extensively at BeethovenX. They recognize that an adjustment might become necessary if/when Optimism rises to become one of Balancer’s top networks by revenue - but they do not want to commit to a timetable for that adjustment as part of this proposal.
The heart of this proposal is one big step forward in growing the partnership between Balancer and BeethovenX. As part of the evolution of that partnership it is completely reasonable that an adjustment to the 50/50 rev split would be on the table. No one is expecting it stays 50/50 forever.
Hopefully this can put some concerns at ease if not then please feel free to speak up. Otherwise we are looking to put this to a vote starting Thursday most likely as time is of the essence.
