Increase revenue allocation for veFrax

Governance Proposals FIPs
1

Summary

  • Current: 10% of protocol revenue allocated to veFrax ( [FIP - 428] Frax North Star Proposal - V2 - #17 by nader.frax ,), resulting in approximately 4.5% APR for max-lock holders.

  • Proposal: Increase revenue allocation to 25%.

  • Expected Outcome: ~10% APR for max-lock veFrax holders, significantly improving locking attractiveness and alignment.

Rationale

  • Stronger incentive alignment: Rewards the most committed Frax community members and long-term governors.

  • Restores lock appeal: A ~10% APR meaningfully increases the attractiveness of max-locking, helping stabilize and support the token’s market value.

  • Operationally simple: Straightforward to implement at the contract/parameter level with minimal inefficiency or “leakage” compared to market buybacks.

2 Likes
2

Yes!! When can we vote on this!!! Was assuming that the North Star coming onstream would start to push the APR up but this doesn’t seem to be happening.

3

This is the best Frax Proposal Draft I’ve ever seen.

First off, im shocked only 10% of Frax Protocol revenue goes to veFRAX. I had no idea such a small amount was being distributed to veFRAX holders.

Honestly, the veFRAX stakers should be getting at least 30% of Frax Protocol Revenue. 50% would make the most sense.

I guess we can get started with a raise to 25% to start with.

By the way, how do you know that veFRAX stakers only get 10% of FRAX protocol revenue?

1 Like