Proposal 15 - FODL Future & Tokenomics Updates

As everyone is aware, the recent crypto market crash has significantly reduced overall usage in DeFi. Trading, swapping, borrowing and lending have all suffered as a result of this, and the FODL platform is no exception. We’ve seen a sharp drop in usage and TVL.

The original idea for FODL was one based on increasing capital efficiency: the ethos that you could use capital for leveraged trades while maintaining ownership of the underlying assets used for the trade via an NFT, eventually being able to utilize that NFT within a lending market to borrow against your open position. While the FODL team believes this capital efficiency theme is valid, we don’t believe the current state of DeFi is mature enough for this vision to come to fruition in the short term. However, we do think that as DeFi markets become more efficient, the interest for these types of trading strategies with increased capital efficiency will grow.

We have been toying with the idea of building out new strategies outside of trading, to implement via NFT wrappers, namely more traditional DeFi and stablecoin farming strategies. We welcome the community’s input on the direction to take FODL in the short term and would encourage more discussion in the Discord and via Snapshot Proposals in terms of what to build next. Our current ideas are in the realm of wrapped Convex/Curve strategies, wrapped Bridge Liquidity strategies (think Synapse, Hop, etc), and other stable pairings.

While the team takes time to establish a revamped product roadmap and vision, we want to conserve FODL tokens for future uses once we decide with the community on an updated direction for the platform. The team proposes the following updates to tokenomics starting in August:

1. Halt platform position (trading) rewards to reduce dilution of FODL -- The high FODL APR is meant to increase user acquisition and create network effects. However, due to a relatively small number of users contributing the majority of TVL, the behavior intended is not being achieved.

2. Remove the 2.5% tax on profit and the 10% tax on governance rewards such as Aave and Comp -- As users are no longer subsidized with rewards, we believe it is only fair to also remove these taxes.

Any and all of these changes may be updated by successfully passed future proposals made by the community or team.