Use FXTL to redistribute Fraxtal revenue to users (v2)

Governance Proposals
8

There is main two scenarios.

  1. We only use the revenue that Fraxtal brings in to reward Fraxtal users and protocols. This is a form of rebate system, but with the implementation of FLOX the most valuable users will get more. However, we can never guarantee what the reward will be, making it less attractive to bet on for new protocols and users.

  2. We issuance of FXS to redeem/convert Fraxtal points, for example as outlined in this discussion (Discussion for a proposal to convert FXTL points to FXS - #9 by Sharkysnakefish). This creates a floor so to speak for the rewards, making building and using Fraxtal more predictable.

None of the options guarantee revenue short term. However we have to look at the solution who will bring the most traction and success to Frax and Fraxtal long term. While issuance might dilute FXS holders in terms of FXS/FXS as you will own less shares of the ecosystem, the goal is to grow the overall value of FXS so that the dilution will be positive for FXS holders. Holders have to understand that issuance can be net-positive for the ecosystem, if it creates value.

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