bitBOMB: The Evolution of BOMB

A lot has been learned regarding seigniorage protocols since we launched BOMB — the very first TOMB fork that started tomb season!

This article will explain what a proposed BOMB relaunch would look like, list the reasons for a relaunch, and will follow with a BOMB governance vote at vote.bomb.money.

The information we have gained, combined with innovations from a few select other Tomb forks, gave us the right mix to launch CZpegs.com with many of these features included.

Despite an overall negative crypto market trend during the entirety of CZpegs’ lifecycle, the protocol has performed and continues to perform well due to the aforementioned features.

Some of the major changes that were implemented in CZpegs, and that we would like to implement into a relaunch of BOMB (bitBOMB) are:

• Taxes when selling the token under peg
• Numerous peg tokens on the protocol
• Fees to enter and leave boardrooms
• Longer epochs resulting in fewer prints per day. This is offset by having numerous boardrooms, so we do have prints every 2 hours, but for any one specific peg token it would be every 8 hours.

Why Relaunch BOMB?

Ever since CZpegs launched and our loyal BOMB community saw the impact a tax under peg has on the protocol, there have been requests to add a tax to BOMB. At first, I was resistant, because it is no small task to relaunch. The relaunch itself is not difficult — it is the migration from OG BOMB, and all the partnerships and existing integrations we have which would make a relaunch difficult.

When the nodes launched, we saw a ton of buy pressure there. A few days later, we had our PHUB presale which saw 545k BOMB taken out of circulation through swaps to PHUB. All of this still did not get us to peg.

Although the OG BOMB protocol was and still remains successful in many aspects, it became obvious to me that launching a BOMB V2 (bitBOMB) would solve a lot of problems and give BOMB a fresh start with a better base, along with a two-year runway for share emissions (farm rewards).

Priorities for bitBOMB Launch

The main priorities we are looking to accomplish with the launch are:

1) Give existing BOMB holders more value and better opportunities. Current BOMB and BSHARE holders getting more value from their holdings is the top priority above all else.

2) Implement new mechanics to keep bitBOMB sustainable while having a much greater chance at staying above or close to peg.

3) Make the transition to bitBOMB simple.

4) Ensure that any token migrations are done in a fair manner ensuring everyone has equal opportunity.

How Will the Migration Work?

We will allow migration from current BOMB assets to bitBOMB assets. This is a complicated thing to get right as we need to be fair to all current BOMB holders, but also ensure the new protocol can get off to a strong start.

Let’s start with BSHARE

With the state of BOMB’s peg, BSHARE has been bleeding value for quite some time. The majority of BSHARE holders have seen considerable losses on that holding. As a major holder myself, I share that frustration with the community.

The migration from BSHARE to the new bitBOMB share has a few criteria for me to deem it a success:

1- Ensure existing BSHARE holders have a path to a new, more valuable share that can be used to generate sustainable high yields

2- Ensure the new share token’s supply remains fairly low to start allowing for explosive APRs on bitBOMB.

The solution that makes the most sense to me is to pre-mint additional share tokens with the bitBOMB deployment and allow BSHARE holders to swap over to the new bitBOMB share token.

Swaps from BSHARE to bitBOMB shares will happen at a 100:1 ratio. In other words, if you swap 50 BSHARES, you will receive 0.5 new shares. If you swap 1,000 BSHARES, you will receive 10 new shares.

There are several reasons for this ratio, the key ones being:

- Share tokens are always trading at a high premium at and shortly after launch. This is due to limited supply, and the competition to farm the high paying SHARE farms, along with getting into the boardrooms first. CZpegs had a share token over $20,000 for a while, and maintained a high share price for some time.

- With the current price of BSHARE, even with a 100:1 swap to the new share, holders should see an instant increase in value in their holdings. As I write this, 100 BSHARE are worth approximately $1,400 USD. I anticipate share tokens in bitBOMB to trade much higher than this at launch, and even for quite a while after launch. I anticipate them stabilizing at an even higher price point than this.

- Some community members have asked for a 1:1 swap, but this does not work. It would be impossible to have the new protocol off to a strong start with 40,000 shares in circulation. It would also demonstrate that we don’t have faith in the value of our new share token if we were to let a $14 BSHARE be swapped 1:1 to our new share.

There will be a 400 bitBOMB share pre-mint that will be allocated to swaps.

At launch, the only bitBOMB share tokens in circulation will be those that have been acquired from BSHARE swaps. The only way to earn additional bitBOMB shares will be via the new farms. However, the fastest way to earn new bitBOMB shares will be the bitBOMB share farm — and the only ones who can participate in this are users who swapped from BSHARES, or anyone who has purchased bitBOMB shares on the open market.

In addition to this, boardrooms will not have many shares in them, due to the limited number in circulation. This will drive price up on shares and give users who swapped from BSHARE an opportunity to be one of the first in the boardroom.

BOMB Migration

Current BOMB holders will be able to swap to the new bitBTC (equivalent of BOMB on bitBOMB) at a 1:1 ratio.

In addition to bitBTC, current BOMB holders will be able to swap to any of the other 3 peg tokens that will be available at bitBOMB. To get an even distribution of swaps, we will provide a small bonus for swaps from BOMB to the other bitBOMB peg tokens.

We need to be careful not to flood the market with too many bitBTC tokens on day 1. This would cause bitBTC to be below peg, which no one wants.

We will start with a conservative number of peg tokens, to allow peg to remain strong and keep boardrooms printing.

Initial peg token mint will look like this (subject to change prior to official governance vote):

- 500,000 bitBTC tokens for an approximate market cap of $1,000,000 at peg.

- The other three bitBOMB peg tokens will be pre-minted to have a market cap of $300,000 each (at 1.0 peg).

The reason for this is that there will be more demand for bitBTC tokens as it is the equivalent of BOMB. These numbers, along with our newly implemented features, should allow all four tokens to have a strong start and remain strong even as the boardrooms continue to mint.

Any of the peg tokens with more than 20% still available after the initial swap concludes will be part of genesis farms. These genesis farms will run for 24 hours. Any peg token that has less than 20% of the supply remaining after the swap period will have its excess tokens burned.

Some examples for clarity:

1) Of the 500,000 bitBTC, if more than 400,000 are taken from BOMB swaps, any remaining from the 500,000 will be burned once the swap period concludes.

2) If only 300,000 bitBTC tokens are claimed in the swap, because 200,000 remaining is more than 20%, we will hold genesis farms for those 200,000 bitBTC tokens.

3) If all 500,000 tokens are taken in swaps, there will be no genesis and no need for a burn.

The above applies to all four peg tokens.

NODES and Token Swaps after Initial Swap Round

Due to various aspects of the current ecosystem, largely nodes, users will continue to receive BOMB as rewards slowly over time.

We will use bitBTC that the treasury receives from boardroom prints to continuously allow swaps from BOMB to bitBTC. This will not be available until after the bitBTC boardroom has started to print. This means there will be a few days between the initial swap period and when the second swap opens, where tokens will not be swappable except on the open market.

BBONDS

We will allow BBONDS to be used to swap to new bitBOMB peg tokens just as if they were BOMB tokens. Using BBOND or BOMB will be the same.

BTC Mainnet Stakers

We will transition BTC Mainnet stakers’ positions from BOMB to bitBOMB. Nothing is required to be done by the users. Once the transition is complete, all stakers will enjoy the new higher APRs of bitBOMB.

CZBOMB-BOMB Pair

After the migration to bitBOMB is complete, we will make necessary changes to the CZBOMB pair at CZpegs.com. Please wait for further notice before breaking any LPs, we will provide continued updates on when to migrate CZBOMB-BOMB to CZBOMB-bitBTC.

When to Break LPs

I would suggest not breaking LPs until BOMB is at peg or close to peg. This way you will have all the BTCB you need to make new pairs on bitBOMB. I anticipate as we get closer to relaunch, BOMB will be at peg with new buy pressure to get involved in bitBOMB.

Governance Vote & Discussion

Governance vote is up at: https://vote.bomb.money/#/proposal/0xd372f2ffda85381182b61ad0a8f5b8cdba25aa40099f566cb9e84b2f5fa91c7d

In addition to this, I’d love to get feedback on the plan. Let’s talk about it at talk.bomb.app

Based,

Aaron