Proposal: Fee Distribution Parameter Vote Relaunch - Fee Split

[hanamizuki]

Thank you everyone for providing feedback. The original options may not be perfect but this is a relaunch of the previous vote which didn’t pass the quorum. So I’m grateful to get this many ideas.

So far we can see the following options proposed (let me know if I missed anything):

1. Original

   • 50% DAO / 50% vePERP holders
   • 75% DAO / 25% vePERP holders
   • 25% DAO / 75% vePERP holders

2. Mckenna

   • 50% DAO / 50% vePERP holders
   • 75% DAO / 25% vePERP holders
   • 25% DAO / 75% vePERP holders
   • 100% to vePERP

3. RDL

   • 25% vePERP / 61.875% DAO / 13.125% Buyback
   • 50% vePERP / 41.25% DAO / 8.75% Buyback
   • 75% vePERP / 16.25% DAO / 8.75% Buyback
   • 91.25% vePERP / 0% DAO / 8.75% Buyback

4. 0xstarscourge

   • 50% DAO / 50% vePERP holders
   • 75% DAO / 25% vePERP holders
   • 25% DAO / 75% vePERP holders
   • 0% DAO / 100% vePERP holders in the beginning, then change to the 2nd highest option 6 months later

5. Lee

   • 25% DAO / 75% vePERP holders (DAO funds used for buyback as planned)
   • 91.25% vePERP / 8.75% v1 Buyback (no funds to DAO)
   • 100% vePERP for 3 months, then option 2
   • 100% vePERP for 6 months, then option 2

6. Matthew0212

   • 50% DAO / 50% vePERP holders
   • 50% DAO / 50% vePERP holders, then allocate 50% of DAO income to vePERP.
     (Effectively 75% vePERP /16.25% DAO /8.75% vBuyback)
   • 50% DAO / 50% vePERP holders, then allocate 62.5% of DAO income to vePERP.
     (Effectively 81.25% vePERP/ 10% DAO /8.75% Buyback )
   • 50% DAO/ 50% vePERP holders, then allocate 72.5% of DAO income to vePERP.
     (Effectively 86.25% vePERP/ 5% DAO /8.75 % Buyback)

And I spent some time consolidating all the ideas about options and it looks like there are 3 sets of options. Let me know if I misinterpret any of them.

Option set #1

We straight out list every idea, even if some of them are irrelevant or against previous vote results.

1. 50% DAO / 50% vePERP holders (original option)
2. 75% DAO / 25% vePERP holders (original option)
3. 25% DAO / 75% vePERP holders (original option)
4. 100% to vePERP (Mckenna’s idea)
5. 0% DAO / 100% vePERP holders in the beginning, then change to the 2nd highest option 6 months later (0xstarscourge’s idea)
6. 75% vePERP / 16.25% DAO / 8.75% Buyback (RDL & Matthew0212’s idea)
7. 91.25% vePERP / 0% DAO / 8.75% Buyback (RDL & Matthew0212’s idea)
8. 100% vePERP for 3 months, then 91.25% vePERP / 0% DAO / 8.75% Buyback (Lee’s idea)
9. 100% vePERP for 6 months, then 91.25% vePERP / 0% DAO / 8.75% Buyback (Lee & 0xstarscourge’s idea)

Option set #2

Some feedback is that any options that are not 50%/50% should not be considered. The argument is that the v1 buyback plan is based on the consensus of the 50%/50% fee split. Although it is not written clearly in the buyback proposal, on the sheet all the numbers are based on this assumption.

• 50% DAO / 50% vePERP holders
• 50% DAO / 50% vePERP holders, then allocate 50% of DAO income to vePERP.
  (Effectively 75% vePERP /16.25% DAO /8.75% vBuyback)
• 50% DAO / 50% vePERP holders, then allocate 62.5% of DAO income to vePERP.
  (Effectively 81.25% vePERP/ 10% DAO /8.75% Buyback )
• 50% DAO/ 50% vePERP holders, then allocate 72.5% of DAO income to vePERP.
  (Effectively 86.25% vePERP/ 5% DAO /8.75 % Buyback)

However, I consulted with dev team and the options here are not easy to implement as it needs manual work to send funds from DAO to vePERP and it’s not really scalable. If we want to move in this direction, we need to dig deeper into the implementation part.

Option set #3

Another group of feedback is that all options about v1 buyback should not be considered in this particular proposal. The argument is that they are irrelevant and the assumption of 50%/50% is not correct. If anyone wants to overturn the buyback plan they should start another proposal.

1. 50% DAO / 50% vePERP holders (original option)
2. 75% DAO / 25% vePERP holders (original option)
3. 25% DAO / 75% vePERP holders (original option)
4. 100% to vePERP (Mckenna’s idea)
5. 0% DAO / 100% vePERP holders in the beginning, then change to the 2nd highest option 6 months later (0xstarscourge’s idea)

Option set #4 (updated)

Based on @abdulla’s opinion we should stick to the original options.

Proposal: Fee Distribution Parameter Vote Relaunch - Fee Split

Regarding the buyback proposal, there has already been discussion and a governance vote suggesting that we use a portion of the fees for the compensation. It would be a complete mockery of the governance process if we allowed a new proposal which opposed the previous vote. I think we need to take a pragmatic approach here on the allocation between vePERP and DAO. It is likely that the bear market will continue, and it is important to consider the state of the DAO treasury. Having a healthy stre…

1. 50% DAO / 50% vePERP holders (original option)
2. 75% DAO / 25% vePERP holders (original option)
3. 25% DAO / 75% vePERP holders (original option)

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I want to finalize the options so we can launch the vote as soon as possible so the “real yield” story can be spread and Perp can take off. Can I get everyone’s collaboration on discussing with respect and only discuss what options we want to include?

I appreciate everyone’s effort in making Perp better. Thank you!