Beanstalk Farms

Proposer

deadmanwalking

Summary

Vote to signal support For or Against any potential form of restructuring Beanstalk’s debt, i.e. reprioritizing some sort of new debt issuance (a new Pod Line) above current debt obligations (existing Pods, Fertilizer, etc.).

This proposal is not to signal support For or Against any particular method of restructuring Beanstalk’s debt—it’s to better understand the DAO’s appetite for any form of it in the first place.

Process Note

This temperature check proposal is intended for the DAO to express a preference in advance of a future BIP. There is no quorum for this proposal given that the goal is to simply gather information and feedback. Stalkholders are still strongly encouraged to participate in order for the outcome of the vote to be as representative as possible. The vote will last 7 days.

Problem

Given the lack of participation in the Field over the previous year it is evident that the excess debt as a result of (1) the inefficiencies in the model prior to the exploit (i.e., BIPs 6, 7, 9, etc.) and (2) the exploit itself (i.e., the Barn Raise) has put Beanstalk in a difficult position (very low on the bowl in the leafblower analogy).

Proposed Solution

Restructure Beanstalk’s existing debt such that a new Pod Line is reprioritized above old Beanstalk debt (the old Pod Line and Fertilizer).

More specifically:

• Create a new Pod Line that is initialized with 0 Pods and a Maximum Temperature of 1%;
• Discontinue issuance of Soil and Pods in the old Pod Line; and
• Allocate a higher portion of new Bean mints to the new Pod Line than old Beanstalk debt.

Some examples of possible Bean mint distributions (% to Silo / % to new Pods / % to old Pods / % to Fertilizer) that favor new Pods (and new participants generally) include:

• 40/40/10/10;
• 50/50/0/0 until some higher Bean supply, such as 500M, at which point the distribution becomes 49/49/1/1, then at 600M it becomes 48/48/2/2, etc.;
• etc.

Naturally, the fewer Bean mints allocated to old Beanstalk debt, the more attractive new participation in Beanstalk would be in theory.

Voting Choices

Voting For is to express interest exploring some form of debt restructuring. Voting Against is to express interest against doing so.

• For
• Against

Considerations

The most obvious consideration is that restructuring Beanstalk’s debt should happen as infrequently as necessary, as doing so is compromises the original loan terms that Sowers opted into. The only time that the DAO has voted to restructure Beanstalk’s debt in the past was at Replant (where the distribution of new Bean mints to the existing Pod Line changed from 50% to 33%). Any decision to do this again should not be taken lightly.

That said, a change like this would have the potential to significantly increase the incentive for participating in the Field again, which would have a significant effect on peg maintenance.