Escape the Tezos Liquidity Baking

Dear spanish and whole Tezos community,

Since the Granada Tezos amendment we are seeing that Nomadic Labs, a subsidiary company from Tezos Foundation, is injecting a feature on all its amendments called Liquidity Baking.

According to its website description, the Tezos Foundation defines its role as: “to sustainably deploy the resources that are under control to support the long-term success of Tezos. This long-term success will only be possible with a vibrant decentralized ecosystem.”

We think that Liquidity Baking harms the interest of our Tezos Spanish Community and other fundraiser donors that made possible the Tezos project, as well as to retail investors because:

• It creates extra inflation on our $xtz savings
• It creates a dangerous precedent issuing xtz through a centralized pair (tzBTC), on behalf of a supposed benefit of generating a liquidity cascade into the Tezos defi ecossytem that is not being achieved.

For that reason we do ask to the Tezos Foundation to stop funding Nomadic Labs till it stops proposing economical amendments instead of purely technical amendments. On the other hand, Tezos Spanish is working on a future spanish baker that would vote against any future inflationary amendment and we encourage to all bakers (specially spanish bakers Ceiboxtz, Wake n’ bake and Mytezosbaking) to escape Liquidity Baking using the escape mechanism following the next instructions from sources:

Create this file, vote.json with the following contents:

{“liquidity_baking_escape_vote”:true}

Then restart your baker and add the parameter — votefile vote.json
Example:

tezos-baker-010-PtGRANAD — endpoint http://127.0.0.1:8732 run with local node /opt/tezos_mainnet/ — votefile /home/mybaker/vote.json bakingtacos — max-priority 2

This will cast a vote to stop the LB when a baker bakes their block. Once enough bakers/block cast this vote, it can end early.

Or if you useKiln:

sudo su -

cd /var/lib/kiln/exe-dir/

mkdir -p config

echo ‘ — votefile /var/lib/kiln/data-dir/vote.json’ > config/kiln-baker-custom-args

echo ‘{“liquidity_baking_escape_vote”: true}’ > /var/lib/kiln/data-dir/vote.json

systemctl restart kiln

We believe that the progress of Tezos cannot be achieved on detriment of the fundraiser donors and retail investors’ community, so we also encourage the Tezos Foundation to adopt immediately effective measures to increase liquidity on Tezos:

• Implementing at once USDC and other major stablecoins on Tezos
• Hiring effective market makers
• Not using TF treasury xtz till other fundraiser treasury resources like BTC or ETH are totally deployed, informing about the detail of grants in a detailed and transparent way.