This is an invite for a vote on changes to our Protocol Fee Distribution.
Maximilian Francis, The Archduke of Austria, had a huge warchest, It was big and voluminous. Filled with gold and stuff. Stuff of value. With this warchest he thought he was on top. But oh no he wasn’t.
Shit got real for Maxi back in 1825 when locals from the region started to question his governance and how he distributed the taxes. Since then the following has been a good liferule: “Don’t be like Maxi. Build up, buy back, play the long game, make sure that everybody wins. “
Why are we telling you all this? Well it seems we should adapt our protocol fees. Based on great discussions on Discord around protocol fee distribution we now invite for a vote.
First of all, we’d like to provide you with a refresher on our current strategy for protocol fees.
From our current tokenomics: https://docs.beethovenx.io/balancer-v2-1/protocol-fees
“80% of the fees collected through trade and flash loan protocol fees will be used to buy BEETS off the open market and redistribute them to liquidity stakers. The remaining 20% will be kept by the team to fund continued development and infrastructure costs. 2% of the team funds will be diverted to secure that Beethoven X remain a positive contribution to the environment, directly removing all our Green House Gas Emissions Scope, 1, 2, 3 and invest in regenerative capturing solutions such as forestry, regenerative agriculture or direct air capturing.”
After long discussions in the governance chat on Discord (https://discord.gg/mAdVd3fcZ9), a more long term strategy has emerged that we would like to present to the community for a vote.
Proposal for Updated Protocol Fee Distribution
- 50% of protocol fees will be re-invested into LP’ing on the platform, controlled by the DAO treasury.
- 30% will be used to buy BEETS off the market and distribute to liquidity lockers.
- 18% goes to the team to cover salaries and infrastructure costs
- 2% will continue to go to The Beethoven Climate Fund
Why the change:
You, dear Ludwigs, have made great points that our current fee distribution needs such changes for the following benefits:
- Holding BEETS becomes a claim on a yield generating treasury, which is an improved value proposition.
- The treasury will become a very large LP as time goes on which will act as a solid tailwind for future growth.
- BEETS will grow a large diversified treasury generating a significant yield. With that we are able to distribute higher protocol fee dividends to stakers in the future.
- Simultaneously, buying back BEETS and rewarding those who choose to lock their liquidity would benefit investors of the project in short terms as well as helping to stabilize the liquidity.
We believe that the proposal creates a balance for near term benefit and long term growth of the protocol, which would be crucial to the protocol and also its users.
This proposal was created through conversation in our Governance Channel on Discord.
Please cast your vote here: https://snapshot.org/#/beets.eth/proposal/0xa9f9aad0ea6bdc2e1bb1b5678f52ec96d8c9234d918e0441df71fc4e6e6d8e08
The vote will end October 31st. 22.00 UTC
Discussion is taking place in the dedicated channel on Discord here: https://discord.gg/5EAqQZMxPd
