BIP #03 [FINAL]: Revenue Share Revision

Summary

The proposed revenue share and tokenomics changes outlined in BIP #03 TEMP Check proposal will be put for voting in multiple phases. This proposal outlines the changes proposed towards the distribution of protocol generated trading fees on Buffer.

Objective:

Establish fee splits for Buffer v2.5 based on the BIP #03 TEMP Check proposal discussion to better align with our strategic goals and enhance stakeholder value.

Specifications:

Current revenue split over USDC.e trading

• 70% BLP liquidity providers
• 25% to BFR stakers
• 5% to treasury

Current revenue split for ARB trading

• 70% BLP liquidity providers
• 15% to BFR stakers ~ (Via airdrop)
• 15% to treasury

As per BIP 03 temp check this vote has 5 options for stakeholders to show support:

Option 1 - 25% of BFR share goes to BFR buy back and burn Option 2 - 50% of BFR share goes to BFR buy back and burn Option 3 - 75% of BFR share goes to BFR buy back and burn Option 4 - 100% of BFR share goes to BFR buy back and burn Option 5 - There will be no change to the current revenue share.

Note: Option 1 to 4 - these options propose allocating 25% to 100% of current BFR staking share for BFR buyback and burn which includes 15% split from ARB trading and 25% from USDC.e trading

Goals of revised fee distribution:

The revised proposal has several objectives:

• Amplify BFR token liquidity from the fee used to buy BFR from AMM
• Offer direct value to BFR holders
• Sets up stage to make BFR deflationary
• Balance incentives of long-term stakers with new token holders

Next Steps:

This vote is decisive and binding. Should either of the options from 1 to 4 secure a majority, the chosen revenue distribution model will be implemented within 15 days of the proposal passing. All buybacks would be executed on Wednesday around 16:00 UTC at Camelot V3 AMM on Arbitrum.