FIP 6: FBDAO emission reduction

The team wants to propose a vote that reduces the emissions of FBDAO.

• Current emission: 1.002 per day
• Proposed emission: 0.5 per day

Motivation

• Since the first proposal to change our governance system to a treasury/revenue share model, the treasury value has an estimated value of $900k - with $53k of that amount being distributed over the course of 15 weeks as revenue share.

• Currently, FBDAO's value is $44000 and emission rate for FBDAO has been initially set to 1 per day with a total of 20 FBDAO in circulation since the inception of FBA staking.

• However, the current average fee collection rate has been much lower than the emission rate of FBDAO with some days being very low, which in turn reduces the value of the FBDAO emitted.

Therefore, in order to both maintain the value of FBDAO and ensure long-term stability, we propose to reduce the FBDAO minting rate to 0.5 per day which is more in line with the current projection of fees.

This will help to ensure that the value of FBDAO is not diluted by the emission of too many tokens during periods of lower trading activity, and that the value of the tokens is maintained over the long-term.

Pros:

This will ensure longer and more fair FBDAO distribution as well as long-term stability

Cons:

FBA staking APR will be reduced until time where fees collected outpace emission rate of FBDAO