Value Accrual for STG Stakers

Issue Statement

The community believes that $STG should start providing value accrual for holders who stake the tokens. This incentivises token holders to stake - and add further to the STG ecosystem. The community also believes that a higher allocation of the fee needs to go to POL. This should come from the fees that are currently accruing to Stargate LPers. Stargate LPers are currently incentivized through STG emissions. Allocating a larger portion of transfer fees to veSTG and POL is better for the protocol in the long run.

Solution

Below is the proposed updated fee structure for Stargate:

• LP Fee: 1.0 bp
  • If there are emissions on a pool, this 1 bp should revert back to POL.
  • If there are no emissions on a pool, this 1 bp should go to LPs.
• Partner Fee pool: .3 bp
• veSTG holders: 1.0 bp
  • This should only go to users that stake their STG for veSTG and should not accrue to sveSTG holders.
• POL: 3.7 bp

LP Fees: These will be allocated to LP pools at the time of transfer

Partner Fee pool: Partner fees will be allocated to whitelisted partners that meet the criteria set by the Stargate protocol team. These fees will be distributed once a month. Whitelisted partners will receive their pro-rata share of the partner fee pool based on the transaction volume ($) sent to Stargate compared to the overall transaction volume derived from these whitelisted partners.

veSTG holders: These will be distributed once a month.

POL: These fees will be allocated to POL at the time of transfer

Success

Success means faster POL growth and new integrations due to the partnership incentives.

Success can also be determined by the amount of STG staked and the length of staking. The community would hope for 15 million staked for a duration averaging 2 years as a goal.

Execution

If voted through - this work would need to be determined by the Stargate protocol team. This includes fee allocation to partners and veSTG holders.

Timeline & Costs

Again - depended on dev resources. This would need to be determined by the Stargate Protocol team.

Summary

$STG needs to give holders utility and functionality for the token. This is a first step in doing so. Additionally, growing POL at a faster rate and clearly incentivizing partners to integrate Stargate are vital to the protocol’s success.