Bomb Money is a unique Binance Smart Chain token that’s pegged to the price of Bitcoin (BTC). Bomb Money users can earn passive income by staking their coins in the Bomb Money Boardroom. Several features are worth understanding to make the most of the Boardroom.
What can you stake in the Board Room?
Users can earn BOMB by staking BSHARE in the Board Room. BOMB is the primary token used for exchange in the Bomb Money ecosystem. The token’s price is algorithmically pegged to BTC — every 10,000 BOMB is worth roughly 1 BTC. BOMB will have numerous other use cases as the Bomb Money ecosystem grows.
BSHARE is one of the tokens that help BOMB maintain its BTC peg. When BOMB’s price is too high, new BOMB tokens are minted to inflate the supply and lower the price. Users can stake their BSHARE tokens in the Board Room to earn the newly- minted BOMB tokens.
APR for BSHARE rewards fluctuates but is often over 1,000%.
How Does Board Room Staking Work?
When a user stakes their tokens in the Board Room, the funds are locked for a set period, measured in 6-hour epochs. BOMB tokens are locked for exactly three epochs and BSHARE tokens for six epochs. The Board Room interface features a timer at the top of the page that identifies when the next epoch will occur. Luckily, Bomb Money’s rewards are determined by how much you have staked at the end of an epoch, meaning your rewards won’t be pro-rated if you stake your tokens late in the epoch.
Another metric worth understanding is the time-weighted average price (TWAP). TWAP is the number used to determine whether BOMB is above or below its pegged price and can be viewed at the top of the Board Room interface.
When TWAP is below 1.0, the protocol issues new BBONDs that incentivize users to exchange their BOMB tokens. When exchanging BOMB for BBOND, the BOMB tokens are removed from the total supply, increasing the TWAP. When TWAP is above 1.0, the protocol mints new BOMB tokens that are rewarded to users staking their BSHARE in the Board Room. To ensure BOMB’s price is always close to BTC’s price, the Board Room only mints rewards for users staking BSHARE when the TWAP is less than 1.0.
What is a Debt Phase?
Debt phases occur after contraction periods when there are still BBONDs to be redeemed. 65% of the newly-minted BOMB tokens are sent to the treasury fund during a debt phase. These newly minted BOMB tokens are used for future BBOND redemptions and are allocated to the treasury even if holders aren’t redeeming BBONDs.
The debt phase lasts until the project has enough BOMB to pay the BBOND debt owed to holders. Because BBOND holders can redeem their BBONDs over the peg price, the project has to collect more than is technically owed.
There’s no way to know how long a debt phase will last since it’s dependent on BOMB holders claiming BBONDs. Still, it is a concept worth understanding since BSHARE APR is significantly lower during debt phases.
Addicted to $BOMB,