FIP-40: Funding Frax Core Development

Summary

Stake 4.5m FXS from the protocol treasury into veFXS to provide yield for protocol treasury.

Introduction

5% of the genesis FXS supply is in the hands of the Core Team Treasury to be deployed for the sole purpose of growing the Frax Protocol to become one of the most important cryptocurrency projects in the world.

In order to achieve that mission, we propose staking 4.5m FXS in veFXS for 6 months to attain yield and allocating that yield. We will use the veFXS yield to fund expansion of the team, bringing onboard community moderators/business developers/outreach, new developers, and create the Frax Grants+Incubator Program. The remaining 500k FXS not staked will be used for similar initiatives. This allows the treasury to fund these programs regardless if veFXS yield crashes or if there is a protracted bear market, allowing the Frax Protocol to continue its mission of becoming one of the most important protocols no matter what.

After 6 months, this exact proposal (with any modifications/adjustments) will go live for another community vote before further allocation of funds so that the project team & extended contributors are held accountable to FXS tokenholders.

The core team will NOT VOTE using the staked veFXS or treasury address so this proposal will NOT affect the team’s ability to sway governance in any way.

Background

The Frax Team Treasury is composed of 5m FXS. This treasury has largely been dormant for the first year of the Frax Protocol. Now that almost all FXS tokens have been released other than the community allocation through gauge emissions, we propose kickstarting the allocation of this treasury in a strategic manner to exponentially grow the pace of FRAX development & further decentralize the work, collaboration, and involvement of the extended community.

For: Deploy FXS Treasury to veFXS and fund team expansion, grants, incubator etc.

Against: Do nothing