Proposal for Reallocation of % of SLP “tax” to Pay a Quarterly Dividend

** This is just an initial draft of this proposal to start gathering thoughts. Open to changes or other thoughts around this but wanted to get circulating**

Proposal for Reallocation of % of SLP “tax” to Pay a Quarterly Dividend

  • Current Situation: The 4% fee collected for buys/sells/transfers is used to fund the Social Lending Pool (SLP) that once the staking mechanism goes live will pay interest in on loans/investments done from the SLP. The SLP has unlimited growth potential and there has been talks eventually to maybe lower this fee well down the road when it is sufficiently funded. However, there is another option to consider to help balance this out and provide immediate passive income to holders. There have been talks in the Telegram chat about reallocating a % of the SLP and SLP “tax” to use as a dividend payout (similar to how a stock with dividend payouts work). This could have a multi benefits to the token, token holders and provide loyalty. There is no loss or risk of funds since we are using the SLP mechanism and would only invest this in safe secure investments before payouts.
  • Assumptions:
    • Banksocial contract and technology has the ability to do this. The team is willing to build this out. We will need the team to weigh in on this.
    • Are there others we need to discuss? Team?
  • Initial Draft Proposal:
    • Reallocate the 4% (“tax”) to the following:
      • Keep 3% of it funding the SLP. The same rules and mechanisms already voted applies.
      • Reallocated 1% of the (“tax”) to a dividend fund. Rules to be voted on.
    • Pay quarterly dividends to Stakers from the dividend fund
      • Stakers will need to be staked for the entire quarter (e.g. Jan 1 – March 31st). If a staker starts staking mid-quarter they do not become eligible until the following quarter. Also, open to this being where they just need to hold for 90 days if the team thinks this can be done (just trying to do what is simplest/easiest to implement).
      • Dividends will be paid out on the 1st of the new quarter.
      • If a staker unstakes at any time during the quarter they are ineligible for that quarter’s dividend. They can continue to receive staking awards once they meet the criteria noted in the above section. You can always unstake if you want without any further penalty besides losing that quarters dividend payout.
      • Any new tokens added to stakes are only eligible for the next quarter. Your % is based on the quarter or 90 days held mechanism.
      • The % of dividend rewards can be voted on and decided on by the DAO or delegates of the DAO. It should be close to the 1% that is used to fund it but enough to keep a cushion and pay any fees need to transact and move the funds around.
      • We can pay the dividend rewards in % similar to the SLP interest:
        • 90% rUSD, 5% BSL, 5% in Hedera – just a possibility
          • The 5% BSL will be purchased on the open market adding a price increase every quarter to BSL.
      • Dividend Funding
        • Initially we should take a small amount (maybe like 100k) from the SLP fund and reallocate to the Dividend fund.
        • The 1% allocation will be then sent to the dividend fund.
        • We should determine the minimum amount we should keep in the fund at all times.
        • The dividend fund should be kept in a safe stable mechanism. Something like a 3-month rotating CD that earns a high-interest or high-interest savings account at either DEFY CU (when live) or at one of our partner CUs. This could be adjusted as the interest rate changes. This will help make additional funds for the dividend fund as sitting idle.
      • Future possible mechanisms
        • Loyalty awards – the longer you stake you get certain increases in your dividend payouts. We would have to figure out the math and come up with a formula that works around this.

        • We could adjust the “tax” % by vote at any time. This could balance things out as we see fit. If the SLP is high and we are not able to fully allocate and invest funds to earn interest we could shift a % to the dividend fund until we can. This also keeps people engaged since their dividend awards can go up if the SLP interest isn’t paying as much.

        • Selection to reinvest dividend awards – could select how you want your payout. You want to reinvest fully back in BSL, all in rUSD, maybe in a selection BTC/ETH/HBAR/BSL/rUSD/Other HTS tokens. Or you can even allocate a % to a community lead marketing fund or rewards fund (think campaigns to generate more interest provide rewards, get more holders, etc.)

        • Could go directly to your account that is tied to your debit card- once the debit is ready. Can be a stack multiple here. Get dividend payouts, go spend it and get rewards for using your BSL debit card in BSL, stake again and rinse and repeat. You can keep building your rewards.

        • Folks that hold certain roles within the community could have multiple to their dividend payout for the period they have their role. Essentially a way to pay them for their services. Roles such as delegates, community admin, and social media influencer. We would define the role and criteria and then a mechanism for them to receive additional dividends. For example, maybe they get 1.2 of the dividend payout. Again will require some math here to make work but this would be a nice built-in mechanism to award volunteer roles and also get people to do these roles.

• Key Benefits to Doing This

  • Provides an immediate way of providing consistent passive income to holders. The larger the volume the more this passive income will be. This income will be larger than the SLP interest generated.

  • Provides another avenue and benefits of being in the BSL ecosystem. Can show the immediate benefit of the so-called “tax”. Can show that if volume stays at a certain level and you stay invested for a certain period the “tax” you paid can be recouped quite quickly. In contrast, the SLP fund interest may take a much longer period to recoup your “tax” and start having positive income flow (in time this fund may get larger enough that it will generate a lot but that will take a while). It is easier to understand this then the SLP fund as this is a direct payout based on volume. Another way to market the benefit of holding BSL and the “tax” function. We can even provide stats from the previous quarter on this - how much was paid out, what was the APR for that past quarter, etc. When folks see this it would easy to point to to see the benefit.

  • Creates more holders/investors for the long term. This provides a benefit for community members to want to get more folks buying BSL and in the ecosystem because it generates more and more volume thus creating higher and higher dividend payouts.

  • Provides some whale protections from excess dumping. Can ride bull/bear markets better. Since the larger amount of tokens someone holds, will generate larger dividend payouts, whales may see the benefit of holding vs selling even as the price increases. If a bull price hits a peak, the market returns to a bear and selloff – the holders benefit from large volume. Also, the price may not have a large selloff due to benefits in place.

  • Provides a way to balance out SLP fund as needed. If we have a much larger SLP fund than loans/areas we can put that SLP fund to work to earn interest then we readjust the “tax” that goes to the dividend as needed. We can also readjust or get rid of the dividend at any time if SLP is working better at any time as well by vote. This also ensures that there is always a good strong passive income flow to BSL holders through either mechanism.

  • The payout in rUSD is a unique feature and will spark people’s interest since its real money not just more tokens. With being able to use this as BSL integrates with TradFi options are endless.

  • Keeps with ethnos of Credit Union’s where we are providing further “profit sharing” from the “tax fee” to community members. As well as community participation in setting “dividend”

  • It scales well as we grow the volume. As the number of holders and number of tokens are out of circulation and staked, it is expected the volume will continue to increase accordingly thus increasing the dividend fund.

  • Other benefits as noted future possible mechanisms as well. For example, keeping the dividend in your BSL accounts through DE-FY, tied to the debit card, paying bills, and earning more BSL rewards. Circular method of keeping money in the BSL ecosystem.


I am all for this idea. We need to start generating income for holders soon as we have been waiting too long. Since we do not seem to have a lot of loans out right now I think this is an easy way to show a key benefit to holders and keep people engaged with the ecosystem. I think the SLP fund/staking will get there in time to provide a nice interest payout but right now it will be small and for probably at least another year. We need to have something in place soon that provides a decent return and benefit to keep money with BSL.


This is brilliant! Cheers!


This would be a great benefit and easy to understand. This would allow early stakers to see more benefit. The 1 loan payout may be discouraging. This would show the power if the DAO and how we can figure out ways to diversify how we get payouts to the owners of the DAO. Thank you for the write up, very thorough.


Love this! Interested in John’s opinion but all for this. We definitely will be able to get much more loans out in the future but brilliant idea and I would vote yes :100:


I like this very much so. We have been waiting for a long time for staking. It seems staking will be happening soon. However, from my basic understanding, there are not many loans out yet and the SLP fund only has so much in yet. We will not get a whole lot of interest from it until there is much more in the SLP and more loans and liquidity are provided to the exchange to get fees. Also, just staking natively on Hedera it pays very little. Staking is supposed to be one of the main features of holding BSL for retail users and if we cannot provide enough incentives initially then I see that as a problem. We need to do something about this and this proposal addresses that well. If this goes through I would probably consider buying more because a 1% payout of the tax could very well pay a nice amount where it is useful and benefits my life. Thank you for putting this together. I am for this and think it would benefit the project greatly.


@PresidentHODL - can you respond with thoughts on this proposal?


This would be awesome. A clear path and way to get passive income to the holders. I like that the DAO can change this at any time. Isn’t this really what banksocial is about - putting finances back in the hands of the community. I am more likely to hold on to BSL tokens and buy more if this is in place. Don’t have a lot confidence in the SLP providing much to me right now until they get more than the 1 loan and much more funds. @PresidentHODL - can we do this and get to vote? Can you respond??


Sounds like a ponzi scheme. “ A Ponzi scheme is a form of fraud that lures investors and pays profits to earlier investors with funds from more recent investors.”

I think you are confused. This is no way a ponzi scheme, It is collecting money from the tax, putting it into a fund that is invested in financial credit union vehicles then distributing as a payout for those that stake. It is clear and works. Everyone can participate and it clear transparent and has rules. Just because you may not like something doesn’t mean you can call it a ponzie or scam or whatever. So tired of folks just screaming it is a scam or something when they don’t like something Cheers.


I don’t agree with you, if you can’t handle hearing opinions that differ from your own then I recommend losing your internet access and finding a hobby.

We continue to have no loans (only the one) and no staking. We should implement this. This is an excellent proposal and well thought out. This would bring and keep a lot of people in the ecosystem. This would provide additional benefits and utility to being a holder. Makes sense to invest this in credit union products and then pay out the dividend. When we doing a temp check.

1 Like