Frax Proposes Fee Sharing for FXS Token Holders
On March 22, Frax Finance founder Sam Kazemian announced a governance proposal on the project's forum outlining the development roadmap until 2026, with the immediate plan to propose fee sharing for FXS token holders.
Kazemian highlighted that the deployment of Fraxtal layer-2 in early March marked a new chapter for Frax, with all ecosystem products now utilizing a shared underlying layer. Additionally, other projects are slated to establish layer-2 solutions on Fraxtal, benefiting from yields on Frax assets including FXS, FRAX, sFRAX, and frxETH, as well as Fraxtal's FXTL rewards.
Frax released a roadmap, aiming to achieve more than $100 billion in Fraxtal TVL by the end of 2026; launch 23 officially provided L3s in the next 365 days; new assets such as frxNEAR, frxTIA and frxMetis may be launched this year; 50% of the revenue flows to veFXS , and the…
— Wu Blockchain (@WuBlockchain) March 22, 2024
The project's vision aims to achieve over $100 billion TVL for Fraxtal by the end of 2026.
Of note, Kazemian's post proposed a community vote to activate a transaction fee-sharing feature where 50% of project revenues would be distributed to staking FXS token holders (veFXS). The remaining 50% would be used to buy back FXS and Frax assets from the market. Holders of veFXS would also earn yields from allocation contracts on both Ethereum and the Fraxtal layer-2.
Kazemian stated that Frax currently records approximately $40 million in annual transaction fee revenues.
As reported by Coin68, this announcement marks Frax's first intent to share fees with users, following a similar proposal by leading Ethereum DEX Uniswap in February 2024.
At the time of writing, the FXS token price on Binance shows a slight decline.
This article summarizes Frax Finance's initiative to involve FXS token holders in fee sharing, reflecting the project's strategic developments and community-centric approach.
