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The DAO ratified in a new fee model with BIP-734. The most important change is in regards to the fee percentages and how non-core pool fees are handled:
Maintaining current fee structure: 50% on yield, 50% on swaps
Core pool framework adjustments:
2.1 Discontinuing non-core pool fee redirect to core pools (as introduced per [BIP-457])
2.2 Same fee split as v3: 70% as voting incentives, 12.5% to veBAL, 17.5% to DAO
2.3 No other change to the existing framework
Non-core pool framework adjustments:
3.1 Same fee split as v3: 82.5% to veBAL, 17.5% to DAO
For the fee allocator logic this means the following:
Calculate the total amount of fees earned for a core pool
Only assign 70% as voting incentives, rest is split to veBAL (12.5%) and the DAO (17.5%)
For non-core pools, do not reassign fees and distribute to veBAL (82.5%) and the DAO (17.5%)
In other words, we need to first calculate / estimate the fees earned for each core pool and distribute fees according to that ceiling. Additionally, handle the rest of the fees coming from non-core pools as one pot that needs to be exclusively distributed to veBAL holders and the DAO and omit the reshuffling / recycling logic into core pools.
The text was updated successfully, but these errors were encountered:
The DAO ratified in a new fee model with BIP-734. The most important change is in regards to the fee percentages and how non-core pool fees are handled:
2.1 Discontinuing non-core pool fee redirect to core pools (as introduced per [BIP-457])
2.2 Same fee split as v3: 70% as voting incentives, 12.5% to veBAL, 17.5% to DAO
2.3 No other change to the existing framework
3.1 Same fee split as v3: 82.5% to veBAL, 17.5% to DAO
For the fee allocator logic this means the following:
In other words, we need to first calculate / estimate the fees earned for each core pool and distribute fees according to that ceiling. Additionally, handle the rest of the fees coming from non-core pools as one pot that needs to be exclusively distributed to veBAL holders and the DAO and omit the reshuffling / recycling logic into core pools.
The text was updated successfully, but these errors were encountered: