Mechanism Overview

This option upgrades the bbBNC reward release mechanism so that governance participation directly affects the final APY a user can earn.

Illustrative example (for explanation only):

bbBNC base APY range: 70% – 85%,

where approximately 15% of the APY is variable and depends on governance participation.

Voting frequency, voting power, and conviction multipliers jointly determine reward release speed.

Reward release rates are directly linked to OpenGov participation metrics.

Development and Implementation Timeline

This option requires substantial upgrades to on-chain bbBNC modules and reward settlement logic, including but not limited to:

• On-chain module modifications
• Reward distribution logic redesign
• Testing and simulation of new economic parameters
• Auditing and on-chain upgrade processes

As a result, the expected implementation timeline is:

At least 6 months, and potentially longer

This is a medium-to-long-term governance mechanism upgrade, and short-term impact on participation may not be immediately observable.

Advantages

• Strong alignment between governance participation and long-term financial incentives
• Encourages users to pay attention to proposal quality and governance outcomes, not just vote completion
• Reward distribution becomes more contributor-oriented:
  • Active governance participants ⇒ higher reward release rate ⇒ higher APY
  • Inactive participants ⇒ part of rewards effectively flow to active contributors