Changes

• Unlocking of veFBA immediately after FIP4, should this proposal pass
• Retirement of legacy veFBA system and bimonthly profit share
• Introduction of $FBDAO as governance/treasury/profit share token

Justification

As mentioned in FIP1, profit share without building a treasury was ultimately stifling the growth of $FBA during periods of lower overall volume, with revenue barely able to cover basic infrastructure costs. This new model however, should allow for more flexibility even in times of potential turmoil, both for the protocol and for our users.

Details:

$FBA will remain as a the cashback token and one that can be staked to earn $FBDAO - The governance/profit-treasury share token that will take place of veFBA. Note: you will not be able to swap veFBA for $FBDAO, instead, FBA will need to be staked to earn $FBDAO.

$FBDAO

$FBDAO will not be a ‘usual’ tradable token. Instead, the only way to receive it will be to stake FBA. Additionally:

• Users can stake $FBDAO and receive 20% Firebird monthly revenue once per month
• Users can exchange $FBDAO to the treasury for 80% of liquid treasury once per month based on the amount of FBDAO exchanged/total FBDAO circulating at the time
• Regarding all things related to the Firebird treasury, only $FBDAO holders/stakers can participate in voting
• The max supply of $FBDAO will be 1000, and minting rate will be 1 per day, that is proportionally distributed to $FBA stakers
• A treasury claim will only use the liquid share of the treasury
• Locking $FBA will allow users to receive $FBDAO at increased rate

The treasury will consist of liquid and illiquid share - illiquid share will be composed of the ve - tokens and anything else that are used to create additional revenue for users as well as protocol owned liquidity that is deployed on friendly DEXes where $FBA is hosted. Whereas the liquid share will be liquid tokens that are not locked or staked. These are all tokens as a result of revenue earned from the platform as well as yields from our ve token acquisitions and any other future investments

Please note that $FBA and $FBDAO in the treasury will also be treated as illiquid.

Pros:

FBA stakers will be given an opportunity to get a share of monthly revenue as well as access to treasury based on their FBDAO holdings

Cons:

Moving to treasury based DAO will require users to actively participate in management of treasury