Convex Finance Community Votes On FXS Protocol Fee Adjustment To 20% Proposal

Key Points:

  • Convex Finance community votes decisively in favor of increasing the FXS Protocol treasury fee from 17% to 20%, reflecting strong support for financial sustainability.
  • The proposal also includes adjustments such as reducing the vlCVX share, allocating boost fees to the treasury, and introducing a 5% fee tied to veFXS income, all aimed at enhancing the protocol’s long-term growth and stability.
The Convex Finance community has initiated a critical proposal for the adjustment of the FXS Protocol fee structure, with voting now underway. 
Convex Finance Community Votes On FXS Protocol Fee Adjustment To 20% Proposal

This proposal seeks to increase the treasury fee from the existing 17% to a new rate of 20%. Voting commenced on September 15 and will conclude at 11:05 on September 19, 2023. As of the current status of the vote, an overwhelming majority, exceeding 99%, supports the proposed adjustment to the fee structure. This strong consensus reflects the community’s dedication to optimizing the FXS Protocol’s financial sustainability and functionality.

In addition to the primary proposal of increasing the treasury fee, the proposal encompasses several other crucial adjustments:

Reduction in vlCVX Share: The proposal suggests decreasing the vlCVX share from 7% to 5%, reflecting a strategic reallocation of resources within the Convex Finance ecosystem.

Allocation of Boost Fees: Under the proposed changes, 5% of boost fees will be directed towards the treasury, bolstering its resources and capacity for future development and initiatives.

Introduction of Treasury Fee based on veFXS Income: Another notable aspect of the proposal involves the addition of a 5% fee to the treasury, linked to veFXS fee income. This innovative approach ensures that the treasury continues to receive contributions based on its overall performance and income generation.

The FXS Protocol plays a pivotal role in the broader Convex Finance ecosystem, facilitating stablecoin stability and maintaining the integrity of the DeFi landscape. These proposed adjustments to the fee structure and resource allocation are crucial steps in ensuring the long-term sustainability and growth of the protocol.

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