ETHBNT is a Bancor pool token representing shares in the ETH:BNT liquidity pool. ETHBNT collects fees from ETH-based conversions on Bancor.
On January 1st, 2020 at 12:00AM EST, the ETHBNT token is being airdropped on all users holding BNT.
Once you receive your ETHBNT in the days following the BNT holder snapshot, you can either hold it and start collecting fees; you can move the liquidity into another fee-generating pool, like DAI:BNT or DAI:USDB; or you can swap the ETHBNT for any token on Bancor, including ETH, EOS and DAI.
The ETH:BNT liquidity pool is no different than other liquidity pools on the Bancor Network, such as DAI:BNT or BAT:BNT, which process conversions and collect fees from DAI-based and BAT-based conversions on the network.
The ETH:BNT pool will be configured with a liquidity provider fee of 0.1% -- meaning an ETH <> BNT conversion will generate a 0.2% fee for liquidity providers, since it requires two hops, ETH <> ETHBNT <> BNT. The liquidity provider fee is distributed to ETHBNT token holders in proportion to their holdings.
At the time of the BNT holder snapshot on January 1st, 2020, 1 ETHBNT will be equal in value to 1 BNT. All users holding BNT in a non-custodial wallet on Ethereum or EOS, or in a participating wallet or exchange, will receive 10% of their BNT holdings in ETHBNT. In other words, if you are holding 10 BNT, you will receive 1 ETHBNT in the airdrop.
The initial supply of ETHBNT pool tokens will be equal to 20% of the total BNT supply at the time of BNT holder snapshot. Like every pool token in the Bancor Protocol, ETHBNT pool tokens will have a dynamic supply: When a user adds liquidity to the ETHBNT pool, new ETHBNT pool tokens are minted; when a user withdraws liquidity from the ETHBNT pool, ETHBNT pool tokens are destroyed.