Important Note: The Chopping Block is paused until the V2 migration by community governance vote.
Each week, four pools will be put "on the Chopping Block". These pools will be:
The one pools with the lowest TVL
The three pools with the lowest % of their outstanding UNI-V2 LP tokens in the pools.
Once the pools are on the chopping block, users will vote which pools to save using the governance voting. The two pools with the highest number of votes will be saved. The two pools with the lowest votes will be removed from BAO Finance. The pool with the most votes is exempt from the next weeks chopping block. The chopping block will continue until there are under 50 pools, or until V2 is fully launched.
This process encourages communities to participate in BAO, but it also ensures that communities with low participation get removed. When pools are removed from the circulation, that means all other pools get the reward from that pool divided between them. This means that even as the rewards reduce each week, by removing other pools the drop will not be as significant for pools that stay.
The Accelerated Period:
During the first four weeks of BAO, the chopping block will include 2x the number of pools each week. In which the four with the lowest votes will be removed.