In June, the early contributors finalised bOMM, including a test run of the migration process. Everything is now ready to implement upon completion of a successful proposal, which was submitted to a vote 2 days ago. Voting will end in 3 days (3:45am UTC on July 12), so if you have staked OMM, make sure to participate:
If the proposal is approved, the Omm UI and smart contracts will be unavailable for up to 12 hours while the upgrade takes place. Based on the team's internal schedule, this is expected to start just after the vote ends, at 4am UTC on July 12.
After the upgrade has been completed, you'll be prompted to unstake your OMM or lock it up for 1 week before you can interact with the Rewards or Vote pages. The upgrade will reset your ICON P-Rep delegations, so if you previously voted for specific P-Reps, you'll need to vote for them again after you've locked up OMM.
While waiting for bOMM to be pushed to mainnet, the early contributors also:
- Continued work on the Java smart contract migration
- Added dark mode to the blog
- Published a blog post for beginners: New to crypto? You need Bridge.
Omm as a self-sustaining DeFi protocol
oDK, one of the early contributors, shared some thoughts on the forum about what it would take for Omm to become a self-sustaining DeFi protocol. The key points are below, but make sure to check out the post for the full details and community discussion:
Use Karma Bond to increase protocol-owned liquidity
Karma Finance is scheduled to launch its Bond service in just a few weeks. Karma gives protocols like Omm a way to own their own liquidity, instead of "renting" it from liquidity providers.
Bonding is a mechanism where a user can sell liquidity pool tokens to a protocol in exchange for its native token through what we call a bond.
To incentivise users to sell liquidity pool tokens to the protocol, rather than the open market, bonds are offered at a market discount. Bonds have a vesting period of 5 days to prevent users from selling all the discounted tokens for a quick profit.
Liquidity providers put the most pressure on the OMM token price as they earn the most OMM rewards and sell to cover impermanent losses, so this approach will allow more of the daily OMM distribution to go to the DAO Fund. The goal is to make Omm the main liquidity provider for OMM.
Although there is a cap in place, the launch of Karma Bond with support for OMM could cause some price volatility. Make sure you're okay with this before you lock up your OMM after the bOMM upgrade, as you won't be able to unlock it early.
Reduce OMM rewards
After Karma launches with bond options for OMM, Omm will own more of the total OMM liquidity. As most of the liquidity will become protocol-owned, it may make sense to start reducing the daily OMM rewards for liquidity providers, and potentially also for bOMM holders.
To begin with, liquidity and bOMM rewards could be reduced by 50%, with the remaining OMM redirected to the DAO Fund, so it's taken out of the circulating supply. Depending on how this affects the protocol, the community could then consider reducing the daily OMM rewards to 0. Reducing or stopping all OMM emissions was also mentioned as an option to explore.
This idea is still very much in the discussion phase, so if you have a strong opinion, make sure to chime in.
Promote the ICX delegation power of bOMM
One of the core benefits of staked OMM is its ability to delegate the ICX supplied to the ICON market. 1 OMM is currently equal to 1 ICX of delegation, even though 1 OMM is 1/13 the price of 1 ICX. Several P-Rep teams – like Gangstabet, IAM, Plan P, and Fomomental – already take advantage of this utility to incentivise people to vote for them.
For example, Plan P and Fomomental provide ICX rewards back to OMM delegators. On a yearly basis, 1,000 OMM delegated to Plan P will earn you 9.36 ICX, or 12.77 ICX if delegated to Fomomental. At current prices, that's a 12–16.5% return in ICX.
After the bOMM upgrade, there will be less bOMM than the current amount of staked OMM (1 bOMM = 1 OMM locked for 4 years), which means the potential yield will only increase. The community agrees that this benefit should be further promoted to all OMM holders – and the ICON community at large – and discussions are ongoing about the best way to do this.
Omm Monks update
The Omm Monks recently completed their first 3 months of community-building initiatives. Now they're ready to do it again, with the Omm Monks DAO Fund - Proposal 2.
They've request US$25,500 in OMM, which will allow them to:
- Continue building their NFT collections
- Fund community engagement initiatives from the Monks Create NFT holders
- Market to other blockchain communities (once ICON Bridge has been released and audited)
- Cover the multisig wallet responsibilities
With the bOMM functionality now up for a vote, the Monks have just launched a competition to incentivise community-created content, which will help to increase awareness and understanding of the change. If you'd like to participate, take a look at the details they shared on Twitter:
And use these resources to help with your content:
If you like what the Monks have been doing, keep an eye out so you can vote to fund their new proposal.
Plans for July
During July, the early contributors plan to:
- Launch bOMM on mainnet (if approved)
- Publish the website and doc updates for bOMM
- Continue migrating the final smart contracts from Python to Java
- Continue forum discussion about Karma Bond integration