TranchessDAO Vol II — Conclusion and Prospects
On 7 Jan 2022, the very next day after the announcement of our new BNB fund, Tranchess published two proposals:
Proposal I: To extend the max lock duration from 6 months to 12 months
Proposal II: To add a gauge for CHESS emission distribution voting
The Snapshot voting for both proposals were concluded on 14 Jan 2022, with both proposals receiving landslide votes in favor. Tranchess has recently updated the max lock duration and will soon reveal the voting gauge once the backend and UI development is completed. We would like to take this opportunity to thank our community for the support and enthusiasm shown in the voting process.
It must have come to the notice of many — The emphasis of both proposals was centered towards the utilization of CHESS. The proposals, together with the recent launch of the BNB fund indicate two of Tranchess’ main focuses for this year:
- Sustainable and consistent return that helps our users hedge market volatility,
- More applications to allow CHESS stakers, aka veChess holders, to enjoy more benefits as well as community governance.
As we continue our gradual shift towards a full DAO, we want to empower our CHESS stakers not only with more governance but also more flexibility and earnings with their veChess.
Full community governance is not achieved overnight but a continuous mould and feedback loop within the Tranchess Community. Extending the lock CHESS duration empowers our community members with further governance oversight of the protocol now and beyond. We had observed a noticeable increase in average lock duration from 3.4 months to 6.4 months, and it’s still growing*. The gain in veCHESS translates into stronger voices and would definitely add to the already vibrant discussions amongst the community — We are eager to see even more of you casting your votes in future governance features. The upcoming voting gauge for the CHESS distribution split would be a great example as well as an important step of broader community governance.
Some raised concerns that the frequent voting on emissions might complicate matters — Resulting in a constantly fluctuating CHESS emission for users across different Tranchess funds. Let’s do some simple analysis together:
Tranchess BNB fund is running its launch promotion till 17 Feb 2022, that is, the split for the BNB fund is currently on a special prefixed %percentage, whilst the CHESS emission split for the following week between the ETH fund and BTC fund is still determined by a combination of 50% TVL weightage and 50% current split (Both snapshot just before 14:00 UTC of the current Thursday). Once the voting gauge is launched, the weekly CHESS emission split amongst all three funds would be adjusted to:
- 50% weightage based on the previous week’s split,
- 50% of veCHESS voting using the voting gauge.
The relative TVL of each of the Tranchess funds will definitely have a positively correlative impact to the veCHESS held by each user. The more each fund increases versus the rest of the funds, the more veCHESS to be gained by the users of that particular fund. Yet, because of the 50% weight that’s tied into the current week’s emission split, the variance on the emissions on a week-to-week basis is somewhat normalized and smoothened.
We would continue to encourage Tranchess users to leave any thoughts and comments under the respective TranchessForum segment and/or any of the other official Tranchess channels. Don’t worry about being left in the dark, because we have you on our radar, and we have noticed that many comments left on our social media channels share similar thinking. We believe a good protocol should be one that caters to the different needs of its users and knowing what users require would help us to deliver the next better product.
We carry the same belief in our product design, and that’s why we launched our BNB fund which collects a sustainable validator reward regardless of market conditions. The market has been on a slippery slope for the last few days, but our BNB fund has doubled its total number of BNBs deposited. The BNB fund generates an 8%+ alpha return for all BNB fund users on top of the normal staking yield, and a 40%+ APY for locking CHESS**. The yield definitely ranks amongst the highest in the market for similar products, and it is compounding consistently at a sustainable rate, remaining relatively neutral to the volatility of market prices.
2022 would be a busy year for the Tranchess Community: With several new releases already lined up for the current quarter, more proposals to review and decide on, more functionalities to explore, and most importantly, more ways to harvest and enjoy yield. Tranchess’ goal of continuously providing its users with diverse and sustainable innovations will allow users to maneuver through different market conditions.
The BNB fund is currently sharing 18% of the total CHESS incentive pool on the Tranchess platform and receiving an added CHESS emission bonus of 60k. While the emission bonus is scheduled to decrease by 20k every week, the incentive pool split will be increased to 20% and remain at this level until the voting gauge is released, after which the split between all three pools will be determined by community voting.
To find out more about the BNB fund, check out the links below:
Tranchess website: https://www.tranchess.com/
Step-by-step guide on how to join the BNB fund:
BNB fund FAQs: https://docs.tranchess.com/faq/bnb-fund
*: At the time of writing
**: The indicative annualized percentage yield of locked CHESS is based on the last 7-day protocol income, CHESS token price, and the average lock duration, compounded manually on a weekly basis.