Proposal
The core team has indicated that, as of now, a revenue sharing model for the DAO is not planned to be integrated unless ALCX holders show strong support in favour of such a model & it's led by the community. This proposal is not to outline an exact revenue sharing model (which would be difficult to do before v2 and the DAO are introduced), but to agree as a community that such a revenue sharing model is highly desired and should be discussed and implemented following the DAO launch.
Background
With the ongoing development of v2 and the DAO, it is difficult for the ALCX community to provide anything but a general direction for future implementations. However, it’s clear through discussions on the Discord server that there is a general expectation that treasury funds and ongoing DAO revenue streams should be shared – in one way or another – with ALCX stakers.
At the moment, the treasury earns 10% from every harvest as well as affiliate fees from Yearn. In the future with more users, more assets, and potentially other sources of income, we can expect the treasury funds to keep growing significantly. Meta yield farming has been the name of the game up to this point (which AIP-17 introduced), but unless there is a way to share this revenue and these benefits with ALCX stakers, the ALCX token will have value only for governance but not for utility and/or economic benefits.
To increase the current and especially the future value of ALCX tokens a clear community direction on the use of treasury funds is needed.
Examples
Again, this proposal is not to outline an exact revenue sharing model. To do this we need to have a clear idea of what v2 and the DAO will look like. But to illustrate the value that a revenue sharing model could bring, consider the following examples:
- ALCX stakers could receive a direct distribution from the treasury in the form of DAI, ETH, or other assets.
- ALCX stakers could use their share of the treasury assets to pay back their outstanding loans.
- Assuming that the high rate of ALCX inflation is stopped, treasury assets could also be used to periodically buy back ALCX tokens from the market.
- ALCX stakers could receive a distribution in the form of alTokens rather than the “real assets” which would allow the treasury to use the original assets for yield farming, and thus increase the treasury size while still sharing revenue.
- …
The point is that there are many ways to bring real utility and economic value to ALCX tokens, and we need to signal that this a) is desired by the community, and b) needs to be developed following the DAO launch.
Vote
A vote for this proposal would signal support for a future revenue sharing model, while a vote against this proposal would signal not to share treasury revenue with ALCX stakers.
As a next step – and assuming this vote passes & DAO is launched – there needs to be a discussion in the DAO on the exact mechanisms of revenue sharing.