JBP-115 - Lower protocol fee to 2.5%

Summary:

Lower JuiceboxDAO membership fee from 5% to 2.5%.

Motivation:

The current protocol membership fee is 5%, meaning all projects need to pay 5% of withdrawn funds from their raises to the JuiceboxDAO treasury in return for newly minted JBX at the current issuance rate.

This proposal is to reduce the fee to 2.5%.

The reason for this change is for JuiceboxDAO to prioritize building an accessible network over accumulating membership fees. The DAO’s treasury is currently healthy and can support years of further protocol development within the current spending routine. Importantly, reducing fees reduces a barrier to entry for projects and gives them the choice to acquire additional JBX voluntarily. It also removes the tax for moving funds between Juicebox treasuries, which incur double fees (i.e. project A pays out project B (incurring a fee), which then pays out its contributors (incurring another fee on the same ETH).

The fee should not be 0. A non-zero fee continues to incentivize the JBX community to advocate for the growth of ecosystem projects, and serves as a spam filter.

JuiceboxDAO will continue to hold the fee switch which is can use to increase fees up to 5% again in the future.

Risks:

Potential reduction of membership growth.

Higher fees might result in larger raises (perhaps eclipsing the cost of the fee) since current JBX members are highly incentivized to support.

Specification:

Multisig sends a transaction to lower the fee to 2.5% on both TerminalV1 and TerminalV1.1. This will affect all projects on the protocol who configure funding cycles after the change is made, including newly made projects.

Timeframe:

This will be done immediately after the snapshot proposal passes.

Copyright Disclaimer:

Copyright and related rights waived via CC0.

IPFS https://gateway.pinata.cloud/ipfs/QmZFRuZNcrRwtDEHhZPCsnYpG1MkByvhHLBowYxeJcCTtk

Discord Discussion https://discord.com/channels/775859454780244028/873248745771372584/946469760978272378

Notion Proposal https://www.notion.so/juicebox/Lower-protocol-fee-to-2-5-b6c89efdaece48f8923d5313e0872de6