According to Foresight News, stablecoin protocol Frax Finance has initiated a discussion on its governance forum about a proposal to convert FXTL points into FXS. The proposal is composed of two parts: an initial conversion and subsequent annual FXTL conversions.
For this purpose, 5 million FXS will be used. After the initial conversion is completed by FPIS, its market value will reach 93 million FXS. Following this, 1 million FXS will be unlocked each year for the conversion of FXTL points.
This move by Frax Finance is seen as a strategic step in enhancing the utility and value of its FXS tokens. The annual unlocking of FXS for FXTL conversion also indicates the company's commitment to maintaining a steady flow of FXS in the market. The proposal, if approved, could potentially influence the dynamics of the FXS market.
