Binance and BSC response by the Sad Cat Cartel
Like a majority of the Merit Circle community, the Sad Cat Cartel is delighted to see the announcement for the listing on Binance. This was announced alongside a Launchpool listing (which has been discussed at length in the MC Telegram) and also a Binance Smart Chain listing. It is our understanding that this BSC rollout was agreed upon alongside the Binance and Launchpool listings and so isn’t up for a DAO vote due to the deal being signed prior to the LBP.
Despite this, we wanted to voice both our concerns, as well as what we believe to be the benefits of listing on Binance Smart Chain.
Our position regarding chain activity is quite clear. We would like Ethereum to be Merit Circle’s #1 chain for all operations and activity. This means keeping the liquidity on Ethereum as well as the staking rewards program. It would be a huge blow to the current LP stakers (many of whom have locked up their stakes for up to a year) if their staking rewards were somehow negatively affected by deploying to a new chain and/or introducing a new liquidity incentive program outside of Ethereum. Something which happened already due to the nature of the Launchpool, where the amount of MC in the market is growing for 60 days. I cannot ignore the trust issue here. It is a concern that deployment to a new chain could fragment liquidity, voting power, and volume - all of which have been highly successful with the deployment on Uniswap V2. These metrics aren’t something we want to lose.
We take the safety and security of the MC token seriously. From a technical standpoint, many chains have recently come under a huge amount of criticism from developers, database engineers and quants due to failing nodes, a lack of testing, and apparent instability issues. It has come to the point where some developers are concerned some chains might collapse completely at some stage which could potentially put funds at risk. Reading this caused us to have great concerns. We’d prefer to leave this highly technical discussion to the Github participants of the appropriate chains, unless you’d like us to clarify further in a separate post.
- Solana 
- BSC 
- Avalanche 
We can see that there will be a lot of positives stemming from a BSC listing. The MC community will be able to trade MC on a dex with low fees and will be able to move tokens between Binance and BSC easily and cheaply. We will be able to tap into the BSC community which will hopefully translate to more holders, more engagement, more decentralisation of holders and more volume. As mentioned by tommyq, P2E games are also being built on BSC, some of which Merit Circle has already partnered with. By deploying to BSC we will be able to interact with these projects more easily and process payments more efficiently.
We do have a concern about BSC and its BNB and BUSD ‘whales’, who could potentially hold and farm with great quantities of BNB and BUSD. If there is to be a rewards program, much of these rewards will naturally go into the hands of these idle BNB/BUSD whales - and wouldn’t favor the DAO and/or regular BSC community members. Perhaps additional community programs, contests or other events could help support the intended and positive network effect of BSC. The decentralisation of holders is important to us, as well as community growth.
We respect the deal that the Merit Circle team made with Binance to list on the CEX, the Launchpool and on BSC, and understand why this deal had to be made without disclosure and without a DAO vote. We believe it is still important to voice our concerns regarding the BSC launch so that the variables which haven’t yet been decided upon can be done so in an informed manner.
- We want Ethereum to continue being our #1 chain of operations and activity
- We do not want to lose any current Ethereum rewards whatsoever to foreign chains
- We want our funds and the MC token to be safe and secure
- We do not want fragmentation of our liquidity, voting power, and volume on Ethereum
- We do not want to lose decentralisation in favor of centralisation
- While the Launchpool program makes for a positive network effect, some trust was lost
- We’d like more details around the ‘Pancake seed liquidity and incentivized pool’.
All-in-all, we’d like to have more details on how the reward system will be laid out for the DAO, and how the community members will benefit in terms of said rewards. Meaning, the incentivization rewards and details surrounding the MC token and the interaction on BSC. Under no circumstance do we want to lose DAO governance utility and power away from Ethereum to favor BSC (or any other chain, for that matter).
To us, every MC token and DAO member is precious and valuable, and we hope we’ve given this proposal a good run-through.
Signed with left paw hook,
Calico ‘Fluffbeard’ Jack