ShapeShift DAO is proud to announce a transformative feature that reshapes its fee structure, positioning the organization for sustainable growth and financial resilience. This feature一known as FOX discounts一introduces a groundbreaking parametric FOX discount model to fees applicable to all trade routes within the ShapeShift ecosystem.
Key Highlights of FOX discounts:
- Parametric Fee Model: The proposal introduces a sophisticated parametric fee model, leveraging a sigmoid curve, to determine fees based on trade size and FOX token holdings.
- Free Trades for Small Traders: In a bid to support and engage small traders, the model ensures that trades below $1,000 will incur zero fees. This initiative aims to foster community growth and loyalty while maintaining a public good for traders.
- FOX Holder Discounts: ShapeShift acknowledges the importance of its FOX token holders and offers linearly discounted trades一with up to 100% discount for users holding 1,000,000 FOX or more. This not only encourages long-term holding but also provides direct utility to the community.
- Governance-Determined Parameters: Initial parameters will be determined by the DAO's governance, ensuring a decentralized decision-making process. The TMDC will maintain parameters temporarily, with eventual governance control over the ongoing maintenance.
- Snapshot Mechanism: Governance decisions and fee model results will be captured via the Snapshot mechanism, adhering to mature DAO best practices inspired by successful protocols like Aave and AMMs like Curve.
Motivation behind FOX discounts:
ShapeShift recognizes the need for a strategic shift in its business model. FOX discounts address the challenges of profitability, token utility, and tokenomics improvements in one swoop.
This proposal is a pivotal step in ensuring the sustainability and survival of ShapeShift. By introducing a data-driven and governance-approved fee model, we are aligning our revenue generation strategy with industry best practices, learning from successful protocols in the decentralized finance space.
FOX discounts has been meticulously designed to strike a balance between accommodating small and large traders, encouraging FOX token holding, and maximizing value capture across various trade sizes.
Benefits of the FOX discounts:
- Accommodates both small and large traders.
- Enables optimal value capture on the most frequent trade sizes.
- Key parameters are under DAO governance, allowing future adjustments.
- Gives FOX holders another utility.
ShapeShift invites its community and stakeholders to review and provide feedback on the proposal, emphasizing the organization's commitment to transparency and collaboration.