MCCP 25: Increase Governance Fee Flow to Treasury

It is proposed that 100% of protocol revenue be directed to the treasury to provide an easier path to profitability and ensure that building long-term value is prioritized over short-term payouts to MTA stakers.

With MIP 24, the DAO decided to reroute governance fees to purchase MTA directly off the market and distribute to stakers. This left the treasury and protocol with no organic way of capturing revenue and accruing value back to the treasury, and thus called into action an initial overhaul of the fee flow in MCCP 20 in order to redirect 50% of these fees back towards the TreasuryDAO.

It is now suggested to increase this fee flow to 100% in order to ensure a sufficient perpetual runway for the protocol. Once this has been achieved, additional revenue can be considered to be redirected back to stakers.

As previously mentioned, it is suggested to increase the fee flow from all sources, which will also include the upcoming Convex Meta Vault and any future vaults until another proposal is made to alter this fee flow model.

Since stakers are already receiving a substantial amount of inflationary MTA rewards through the Emissions Controller, enough incentivization to stake will be left for Meta Governors to ensure continued participation in the ecosystem.

Technical Specification

The functionality to split the revenue is part of the contract RevenueSplitBuyBack deployed on Ethereum Mainnet:

• 0x0E423505A4EB417a75b21f7A35E84ae378e665b9

The ProtocolDAO multisig will queue the following transaction to set the Treasury fee to 100% (effectively removing distribution of revenue to stakers):

• setTreasuryFee(_treasuryFee)
  • _treasuryFee = 1000000000000000000 (1e18)
  • 1e18 = 100%

Links

• RFC: Increase Governance Fee Flow to Treasury
• Proposal: MCCP 25: Increase Governance Fee Flow to Treasury
• Discussion: MCCP 25: Increase Governance Fee Flow to Treasury

Should the governance fee flow to the treasury be increased to 100%, and all protocol fees be rerouted to the TreasuryDAO as proposed in MCCP 25?