As a protocol we need to look at ways to increase the usefulness / demand of veFXS tokens so i have started this thread so people can share their ideas on how we can do this with the idea of putting up a proposal once a few good ideas have been discussed.
I would like to propose the idea of rewarding locked veFXS holders with extra rewards once the FRAX market cap reaches set target.
When the USDC- FRAX pair was added to the gauge we voted for some of the rewards that where issued to the USDC-FRAX v2 stakers to be re-directed to the protocols treasury, so i propose some of these funds are used to pay for these extra target based rewards.
i propose that at each level we reward the veFXS holder with 5-10% of the treasury FXS holdings.
$5b ( final reward)
the rewards should be paid out over a 3 month time frame and only paid to locked veFXS holders.
this will result in veFXS holders having the same risk as before, but will now have more rewards if the FRAX protocol grows to become a much bigger project. so from an investors point of view veFXS will have a better risk / reward (imo).
i should disclose that i am a veFXS holder but it is only around 4.5% of my total investment in the FRAX protocol.