Sam Kazemian, founder and CEO of the decentralized financial protocol Frax Finance, said in an interview with foreign media "CoinDesk" that the Frax core team may soon follow the proposal of the decentralized exchange Uniswap and collect protocol fees. A portion is allocated to stakers of their native token.
The governance and application token of the Frax ecosystem is FXS, and users who lock FXS receive veFXS tokens, allowing them to retain their utility and governance rights. Holders can also stake veFXS tokens on the Ethereum mainnet and Frax’s second-tier network Fraxtal.
Kazemian said in an interview that the above proposal will propose sharing the protocol revenue with veFXS token stakers, and "whether it passes will depend on the community." The Frax community voted to stop revenue sharing in 2022.
Frax Finance said on the X platform last Saturday:
“Should veFXS holders vote again to distribute Frax protocol revenue to veFXS stakers? Frax Finance’s annual revenue is in the high 8 figures and growing, most of it is now being held in the vault, it’s time to reboot it ?"
Should veFXS holders vote to distribute Frax Protocol revenue back to veFXS stakers again? Frax Finance makes 8 figures of annual revenue & growing, mostly being conserved in the treasury now. Time to turn it back on? https://t.co/3Yd9oDV98A
— Frax Finance ¤ ¤ (@fraxfinance) February 23, 2024
After CoinDesk published the news, FXS price jumped more than 15% and has now fallen back to around $9, according to TradingView data.
Related reports: "The Uniswap Foundation proposes to allocate protocol fees to UNI pledgers, and UNI soared by more than 50% after hearing the news"
This article Frax Finance considers launching a Uniswap-like reward mechanism to allocate protocol fees to veFXS stakers first appeared on Zombit.
