Proposal to change Swarm Network Tokenomics

Description of the proposed Governance Action

IssuanceMintFees: Today SRC20 issuers are required to stake their SWM issuance stakes based on this rate card. We propose to turn this into a fee rate card and amend it with this previous proposal (“IssuanceMintFee”).

The IssuanceMintFee will be collected at minting of SRC20 or changing of NAV within the SRC20/SPF.

The distribution will start with 80% of the IssuanceMintFees going to a SWM Staking Pool (see below) and 20% to the SWM Network Treasury at 0x689A20DAA8B813A73f86717b572e8FA3a42398d6, which will be allocated by SWM Governance.

SWM Staking Pool: This pool becomes the hub for the SWM protocol to reward behavior.

Smart Pool at https://pools.balancer.exchange/#/pool/0x8012cf225535c377f47781ff8937b1901be4da71/about

Balancer Smart Pool (0.001% swap fees, 50% SWM / 25% LP1 / 25% LP2, SWM Governance will decide going forward on swap fee, weights, tokens)

The IssuanceMintFees and Masternodes Rewards (renamed as Staking Rewards continuing to follow the set schedule) will voluntarily be added to the assets within this pool, such that the asset base increases constantly and the SWM Staking Pool Token holders benefit on an ongoing basis.

LP1 Liquidity Pool (SLP): Balancer Smart Pool at https://pools.balancer.exchange/#/pool/0xbcbaa95dba4c31283bbc4454c6aa137e26eab009/about (0.001% swap fees, 50% SWM, 50% ETH SWM Governance will decide going forward on swap fee, weights, tokens)

LP2 Liquidity Pool (UNI-V2-ETH-SWM): Uniswap Liquidity Pool at https://info.uniswap.org/pair/0xe0b1433e0174b47e8879ee387f1069a0dbf94137 (0.30% swap fees, 50% SWM, 50% ETH, no governance)

SWM Governance: The SWM treasury continually receives a portion of the IssuanceMintFees; it starts with 20% and can deploy into further development or market development, all subject to SWM governance.

SWM governance and treasury distribution change from the SWM token at 0x3505f494c3f0fed0b594e01fa41dd3967645ca39 to SWM Staking Pool Tokens (SSP) at 0x1a779dc9b42120b78a7eead73f454234b2687306, as these SWM hodlers have a higher degree of vested interest.

Purpose and rationale for the Governance Action and its intended outcomes Creates an ongoing development budget that scales with adoption and sustains protocol innovation

Preserves the core intentions around incentivizing token liquidity

Aligns better the protocol adoption with the SWM token value to the benefit of engaged SWM token holders

More optimal gas, as the distribution of value into the staking pool participants are only based on single transactions and each pool participants individually decides when to take out their pro-rata share

Identify the specific uses for which Swarm Treasury funds may be expended to support the Governance Action;

100K SWM cost compensation for setting up smart pools to 0xB28Cd30E589D5eed07c147c5A0b60ef582eE7982

License Copyright and related rights waived via CC0.