Author
4 years locked.
Proposal
Use the “Project Treasury / Grants / partnerships / Security-Bug-Bounties” veFXS balance to farm incoming bribes and fund an airdrop for veFXS holders.
Background
When FRAX launched it allocated 5% of the FXS supply to the “Project Treasury / Grants / partnerships / Security-Bug-Bounties” fund.
Since then we have voted to lock most of this FXS in veFXS , see FIP-40 > https://snapshot.org/#/frax.eth/proposal/0x9f2a821579795a658f6d0bd1e802221865a6c79dbac4e7310988cd8f62ccc432
Generally speaking this FXS remains locked in veFXS, only being removed once a month so a small amount of FXS can be removed to fund a selection of our monthly costs.
We currently have just over 4.1m FXS locked in veFXS and it can be tracked here.
https://etherscan.io/address/0x9aa7db8e488ee3ffcc9cdfd4f2eaecc8abedcb48#tokentxns
Summary
The fund is being used to fund the projects needs but 99% of the time is just sitting in veFXS staking collecting a small amount of rewards.
Motivation
The 4.1m veFXS is offering us little to no value and can be used in a more capital efficient way while still fulfilling its role of funding grants, partnerships and security.
Right now 4.1m veFXS controls around 4.2% of the weekly gauge emissions if all veFXS voters vote.
Proposal In Detail
We allow the team to use these veFXS to vote on the FRAX gauge when they can earn bribes for there voting power.
We use the veFXS to collect bribes until we have collected $25m in total value or the veFXS amount in the wallet drops below 500k.
We then use this $25m to fund an airdrop to veFXS holders.
While the funds collected go from $0 to $25m the team can stake the funds collected to help us reach the $25m target faster.
Voting options
- For: action this proposal
- Against: do nothing
Off-Chain Vote
Timeline
Jul 14, 2022Proposal created
Jul 14, 2022Proposal vote started
Jul 19, 2022Proposal vote ended
Nov 21, 2025Proposal updated