According to CoinDesk, Frax Finance's core team is contemplating a proposal to distribute protocol revenue among stakers of its veFXS token. The community will have the final say on whether to approve the proposal, according to Frax's CEO. If submitted, this proposal would follow a similar one made last week by leading decentralized exchange Uniswap.
Frax Finance's CEO and founder, Sam Kazemian, revealed that the decentralized finance (DeFi) protocol's core team might soon propose sharing a portion of protocol fees with stakers of its native token, following Uniswap's example. The governance and utility token for the ecosystem is FXS, and users who lock their FXS receive veFXS tokens, allowing them to maintain their utility and governance rights. These veFXS tokens can be staked on the Ethereum mainnet and natively on Frax Finance's layer 2, Fraxtal.
The community voted to halt revenue sharing in 2022. Last week, Uniswap proposed rewarding UNI token holders who stake and delegate their staked tokens with a portion of the DEX's fee earnings. This proposal was well-received by the crypto community, resulting in a 60% increase in UNI's value. Several other DeFi tokens, including COMP, AAVE, and SUHI, also experienced a rise in value. Kazemian stated that they would follow Uniswap's lead in proposing the revenue sharing, but it would be up to the community to pass it.
