What is BCKGov and what does it do?
BCKGov is BoundDAO's governance token. BCKGov has 3 main utilities:
BCKGov Emissions: When a user mints $BCK using a yield-bearing stablecoin like $eUSD, Bound appropriates a portion of the yield generated by this collateral to fund the cashback app, and the protocol itself. To offset the resultant loss in APY, Bound permits users to stake 2.5% of their minted BCK in BCKGov, thereby qualifying for BCKGov emissions that boost the overall APY for crypto users. To counteract the inflation from BCKGov emissions, if a user's stake falls below this 2.5% benchmark, their emissions are sold at 40% of their value in BCKGov. 25% of the proceeds are given to the BCK savings account to enchance the APY, and the rest of the proceeds from this sale are then burnt to diminish the total supply of BCKGov.
Voting Rights: BCKGov holders have the authority to vote on protocol modifications and proposals, such as adding new LSDFi stablecoins and LST tokens on Bound.
Profit Sharing: BCKGov holders are entitled to a fraction of the protocol's profits. This comes from the 3% tax that will be added to future updates, where 1% of this tax will be given to BCKGov holders via the BCKGOV savings account.
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