BIP19 and Yield Bearing Tokens

The BIP19 -"Incentivize Core Pools and L2 Usage" introduced a new fee distribution on interest-bearing Core Pools. The proposal passed on 3rd July 2022.

A Core Pool is a Pool that contains at least 50% yield-bearing tokens that Balancer earns a fee on.

On Ethereum Mainnet, Core Pools get fees they generate used as bribes for them in the next cycle after the DAO takes 25%.

On L2s such as Polygon and Arbitrum, all fees earned are bribes for the Core Pools on each network. Instead of going to Balancer, this revenue goes towards incentives (bribes). The goal is to incentivize the liquidity of yield-bearing tokens (eg: wstETH, stMATIC, etc.). The 50% protocol fee for the yield on these tokens also increases the protocol’s revenue.