First proposals to vote re: Epoch 2 tokenomics structure.
Many changes are underway to update FATExDEX v2:
- Membership Point Structure —the more points you have the more your locked rewards increase by a percent based on time of LP deposits & opportunities for airdrops and “first deposit rights” for new LPs.
- FATExDAO is fundamentally against punitive liquidity structures, but it is also not a dex or a yield farm. It is a digital asset depository to form a DeFi bank/fintech & pool members' capital to achieve specific objectives that will increase the capital/wealth of its members. Like any institution, expectations must be managed and measures taken to have the system avoid being taken advantage of:
- There will be at least two deterrents of yield farming:
- Fees for “early” withdrawal / short-term yield farming deterrence (these will go to xFATE holders)
- “Early” LP withdrawal will also decrease the locked rewards a user will earn at the end of the epoch. These fees will go towards the rewards controller and serve to increase the percent increase of locked rewards for committed DAO members.
- Simply, if you are committed you will gain a lot more than if you try to yield farm and/or dump FATE tokens.
- As always, all particulars will be put to a vote. (i.e. fee schedule, percent reward member levels etc.)
How do we justify this?
FATexDAO has a mission — see our docs if you are not familiar.
$FATE is a governance token. It is not meant to be sold for profit nor does it have real tangible value (yet) — Unlike almost every other, similar protocol, we are geared towards monetization — which will be distributed to DAO members who hold FATE, legally. Therefore, we must reward and encourage those who wish to remain long-term members and help FATE grow while stopping those who merely want to take the rewards and sell them on the dex (which hurts those who want to participate in the DAO and its future enterprises — which are starting to come to fruition).
What we are proposing is a solution that rewards committed members through the same means that will be used to eradicate the price instability et al.
–
Simply, FATE is meant to be held, compounded, and accumulated.
Everything will be voted upon, this post merely serves as an introduction to what is planned.
