APGP 1 : How should be used the treasury fees ?

Key words: Treasury allocation, reward long term holders

Summary: Use part of the 0.05% swap fee collected by the treasury to generate a yield for veAPW holders

Context: Since the launch of the protocol, APW holders can lock their tokens for up to two years to increase their voting power, but $veAPW holders aren’t incentivized to lock, so a lot of Apwine are held in liquidity pools or on Tokemak.

Rationale: The goal of this proposal is to activate a yield for veAPW holders that can be claimed every week for example. Considering that the DAO incomes might be too low for now, it can be interesting to consider bridging the fees on Polygon to make it accessible for every user.

If the DAO decides to distribute these funds, we can consider several approaches:

• Distribute every token as collected (Geist model)
• Sell collected fees for stables claimable (Curve model)
• Sell collected fees for ETH claimable
• Sell collected fees for APW claimable
• Let the choice to either receive stable, ETH or APW

Benefits of the stables/ETH options:

• Generate a yield in stable, independent of the APW price
• Can be distributed in a strategy (for example PTaUSDT/USDT LPs)
• Less token to claim (less gas fees)

Benefits of the APW buy back option:

• Buying pressure on APW
• Incentivize users to increase their voting power
• Less token to claim (less gas fees)

Benefits of the several tokens options:

• Can be converted to PTs
• Yield diversification for the users

If this proposal passes, there will be another one about accumulating the rewards for a period on mainnet before bridging it to Polygon and reduce users gas fees.

Means: 70% of the collected fees distributed to veAPW holders, 30% accumulated in the treasury.

Technical implementation: Fees distributor contract deployment

Voting options: Yes, sell 70% of the fees for APW claimable Yes, sell 70% of the fees for stables claimable Yes, sell 70% of the fees for ETH claimable Yes, leave the choice between ETH, Stable and APW Yes, distribute 70% of the fees in the tokens collected No, change the repartition No, don't distribute any fees to veAPW holders Abstain