Bancor is announcing a set of updates that collectively seek to create more liquidity, more developers building on the Bancor Protocol and more community governance through the use of a decentralized autonomous organization (the BancorDAO).

In January 2020, to accelerate and incentivize network liquidity, Bancor will airdrop BNT’s entire Ethereum reserve, which will amount to 10% of BNT’s market cap at the time of the airdrop, on all BNT holders in the form of ETHBNT Bancor Pool Tokens (ERC20). This will instantly turn every BNT holder into a liquidity provider on the network.

Ultimately, BNT holders and liquidity providers will become members of the BancorDAO. BancorDAO members may propose, vote on and issue upgrades to the Bancor Protocol, including the introduction of BNT staking rewards (through inflation) and its distribution to liquidity pools on the network.