CIP#13 - Implement an admin fee of 50% (0.02%) across all pools to be distributed to veCRV holders

Summary:

As extensively discussed in CIP#7/#9/#11, this proposal aims to implement the admin fee on all pools. This would split the 0.04% trading fee between liquidity providers and veCRV holders and could distribute over $10M in fees a year to veCRV holders.

Abstract:

Please refer to the previous part of this proposal:
CIP#7 - Add an Admin Fee to be distributed to veCRV holders
CIP#9 - How should the admin fee be distributed to veCRV holders?
CIP#11 - Which pool should admin fee be tested on?

  1. 50% of trading fees will be collected by the burner contract
  2. Will then be used to buy CRV
  3. Will then distribute CRV proportionally to veCRV holders

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Motivation:

This proposal aims to incentivise veCRV holders further and reward long term committed holders who have vote locked their CRV.

Specification:

  1. Signalling vote on implementation of a new admin fee - Success
  2. Signalling vote on how those fees should be distributed - Success
  3. Signalling vote on which pools will receive the admin fee - Success (all pools)
  4. On-chain vote: Admin fee implementation on DAO <== We are here
  5. Set burner contract to distribute fees

If this is voted in, there will be need to be a secondary DAO vote that will set a burner contract that will then distribute those fees. Until this happens (step 5 above), fees will accrue and will be retroactively distributed to veCRV holders once the burner contract is built and voted in by the DAO (assuming this is voted in).

Poll:

https://dao.curve.fi/vote/parameter/2

7 Likes

Important bit on here:

If this is voted in, there will be need to be a secondary DAO vote that will set a burner contract that will then distribute those fees. Until this happens (step 5 above), fees will accrue and will be retroactively distributed to veCRV holders once the burner contract is built and voted in by the DAO (assuming this is voted in).

The burner contract could take a little while to put together as the team has a lot going on right now however all veCRV rewards would then get their CRV awarded retroactively from the point when admin fee is implemented (which would be 7 days from now).

4 Likes

I have 2 questions:

  1. How often would fees be distributed?

  2. Is the CRV distributed locked in any way?

Thanks!

  1. Continuously
  2. No plans for that right now.

But this is still a DAO so anyone with veCRV is free to suggest/change things

  1. 50% of trading fees will be collected by the burner contract
  2. Will then be used to buy CRV
  3. Will then distribute CRV proportionally to veCRV holders

My question is on item# 2. After the burner contract is created, who/what will be buying CRV tokens, and from where? Then, how will the booking be done, for the period from the passage of the CIP to when the burner contract is created?