QIP #5 : Adjustment of Thena Aggregation Fees

Proposal: Adjustment of Thena Aggregation Fees

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Abstract:

We propose an adjustment to the Thena aggregation fees to better optimize rewards distribution and create sustained buy pressure for the $QUO token. Currently, 80% of the aggregation fees go to the voters, while 20% is shared among qTHE stakers, vlQUO pool, the treasury, and the caller. The new fee distribution would allocate 85% to the voters, with the remaining 15% split equally among qTHE stakers, the treasury, and $QUO buybacks. This change aims to ensure consistent price action by generating continuous buy pressure for $QUO.

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Current Fee Structure:

• 80% to Voters
• 7.5% to qTHE Stakers
• 7.5% to vlQUO Pool
• 4.5% to Treasury
• 0.5% to Caller

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Proposed Fee Structure:

• 85% to Voters
• 5% to qTHE Stakers
• 5% to Treasury
• 5% to $QUO Buybacks

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Motivation:

The current fee structure allocates a significant portion to various pools but does not maximize long-term growth potential for $QUO. By adjusting the allocation, we aim to:

1. Increase Buy Pressure on $QUO: Allocating 5% of the fees toward $QUO buybacks will create continuous and sustained buy pressure, which can enhance price stability and help counter selling pressure. This constant buyback mechanism will serve as a price support, benefiting long-term holders and creating a healthier ecosystem.

2. Streamlined Rewards Distribution: A more balanced and focused allocation of fees will ensure voters and long-term participants continue to be rewarded while simultaneously directing resources toward increasing the $QUO price floor.

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Conclusion:

This new fee distribution model seeks to enhance the overall health of the Quoll Finance ecosystem. By increasing the portion allocated to $QUO buybacks, we can support consistent upward price action, creating a favorable environment for both new and existing investors. This proposal ensures a win-win for voters, long-term participants, and the ecosystem's growth.