Bribes
A core feature of the Bronto model is the bribing mechanism, which incentivizes active participation and strategic collaboration in the ecosystem. Bronto adopts this model with two types of bribes:
1. Voter Bribes
Voter bribes enables users and protocols to influence emission allocations to specific token pairs. Here's how it works:
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Mechanism:
Users or protocols offer bribes to veBRONTO holders in exchange for their votes on particular liquidity pools. -
Proportional Rewards:
Voters receive a proportionate share of the bribes based on the weight of their votes at the time of epoch flip. -
Purpose:
This allows stakeholders to strategically direct emissions, ensuring token distribution aligns with their interests and supports specific pools.
2. Liquidity Bribes
Liquidity bribing directly incentivizes liquidity providers (LPs) to add liquidity in particular pools.
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Mechanism:
Protocols offer tokens as bribes to LP stakers to encourage liquidity growth in targeted pairs and are distributed to LPs for the full next epoch after the flip. -
Primary Beneficiaries:
Protocols aiming to bootstrap liquidity efficiently within the BRONTO Automated Market Maker (AMM). -
Outcome:
Liquidity bribes attract liquidity to specific token pairs, fostering robust trading pairs and deeper markets.