BIP 63 - sFTMx protocol revenue distribution

We have considered all feedback provided for the previous sFTMx liquid staking revenue proposal and have created a plan to address the immediate concerns and provide for long-term sustainable growth with particular outlook to the launch of Sonic.

As the saying goes, you must spend money to make money. Wise and calculated investments can yield exponential returns. We have already seen the sFTMx supply grow remarkably since BeethovenX has taken over the protocol. The continuation of this trend should lead to greater sFTMx revenue and consequently, greater maBEETS bounties.

This new plan further encourages Fantom ecosystem cooperation and collaboration through the development of an sFTMx ecosystem growth program. This will vastly increase the DAO’s networking potential and its ability to harness more business development opportunities. By expanding sFTMx liquidity and supply, more revenue will be driven to sFTMx and maBEETS bounties to spin the sFTMx and maBEETS flywheel.

Summary:

Develop a collaborative ecosystem growth program to expand the reach, visibility, marketing, adoption, use, and supply of sFTMx. Set treasury allocation to 10% for $BEETS buybacks and temporarily allocate 80% to maBEETS bounties until the launch of the growth program.

Motivations:

• Grow sFTMx liquidity, visibility, marketing, supply, use, adoption, and liquid staking revenue.
• Increase maBEETS bounties.
• Increase BeethovenX revenue and fees.
• Drive Fantom ecosystem cooperation and collaboration.
• Increase BeethovenX networking and business development power.
• Provide partners a means to participate in the ecosystem expansion program.
• Increase maBEETS bounties until the program is launched.
• Increase maBEETS bounties exponentially in the long term.
• Enhance the sustainability and longevity of the protocol through $BEETS buy-backs.
• Capitalize on the launch of Sonic.

Proposal:

We propose to launch an sFTMx growth program that aims to grow its reach, visibility, marketing, adoption, use, supply and ultimately revenue of sFTMx. Currently, sFTMx does not make much revenue as a whole. We believe that investing in this growth can create a flywheel to increase the sFTMx supply and revenue exponentialy into the foreseeable future.

We propose to utilize 50% of the sFTMx revenue for this purpose as the foundational element to achieve this goal and to create an efficient and sensible framework that allows growing sFTMx liquidity, supply and revenue. The current thinking is that any project can become part of the growth program and can receive a share of the 50% revenue allocation, proportional to their utilization of sFTMx. It is important to note that Beethoven X can also become part of this program and receive a share of this allocation. In step with this plan, we look forward to the launch of Sonic and the many new opportunities the program and Sonic will open for sFTMx, maBEETS, and BeethovenX as a whole.

This proposal continues to allocate 10% of sFTMx revenue to Stader and earmarks it for the DAO treasury once the payment obligations with Stader ends. 10% will also be used to further the longevity of the protocol by acquiring more $BEETS via treasury buy-backs.

Until the growth program launches, 80% of sFTMx revenue will be distributed to Beethoven's sFTMx gauges as increased maBEETS bounties.The MDs will decide which pools to incentivize, prioritizing the growth of sFTMx and shall decide if the bounties will be distributed as minted or bought sFTMx or as sFTMx BPTs. Upon launch of the sFTMx growth program, this allocation will be reduced to 30% with the goal to increase the total sFTMx revenue long-term and therefore also increase maBEETS bounties.

Impacts/Risk assessment:

A short-term increase in maBEETs bounties with the goal of an even greater increase long term after the implementation of the ecosystem program. Increased BeethovenX liquidity for sFTMx in the short term. Long term, the sFTMx total supply and liquidity across all pools should substantially increase along with sFTMx revenue. More Partnerships and collaborations across the network, further strengthening the reach and power of BeethovenX business development. The buy-backs will further stock the treasury with $BEETS, increasing the protocol’s sustainability, and providing a means for replenishing any $BEETS used as part of the sFTMx expansion program as seen with BIP-62.

The risks include smart contracts and the possibility of malicious attacks.

Execution:

The sFTMx fee allocations will take place as soon as possible following the adoption of this BIP. The Composers and MDs will continue to develop the details of the ecosystem program, partner outreach and the creation of educational materials. An article will be prepared and published at a later date that describes the inner workings of the program. Its commencement date will be announced when ready to launch and continued partner outreach and collaboration will follow to further growth the program. The MDs and Composers will execute the buy-backs at their discretion and remain sensitive to market timing.