TIP 06: Update referral fee split

Summary This proposal is to update rebatePercent and referralPercent parameters from 50/50 to 35/35.

Abstract Updating these parameters will improve alignment between stTLX holders, referrers, and traders utilizing the TLX referral program.

Motivation The referral program is an important growth mechanism for TLX. Having been live since day 1 of protocol launch, the referral program works by rewarding referred users and referrers with redemption fees. Whereby if a a referred user redeems $1000 worth of leveraged tokens the redemption fee is distributed as follows:

• 50% to the referred user (rebatePercent)
• 50% to the referrer (referralPercent)

While some referral programs have the problem of not offering adequate incentives to referrers, the TLX referral program has the opposite problem. It is offering too much of an incentive. This has become readily apparent over the past weeks as more users are trading via a referral link. Leveraged token trading volume that is generated by referred users retains all of the redemption fees between the referred user and the referrer while distributing none of it to stTLX holders. Initially, this was not a problem as the majority of leveraged tokens were redeemed without a referral. Now that this is changing, it is starting to have a negative effect on stTLX holders since redemption fees make up a significant percent of the sUSD rewards they receive.

Specification The rebatePercent and referralPercent parameters should both be set to 35%

Rationale The TLX referral program has proven to be successful, which is a good thing, but it should not come at the cost of stTLX holders. Updating the rebatePercent and referralPercent parameters from 50/50 to 35/35 will enable stTLX holders to earn redemption fees on all trades (100% of the redemption fee for non referred redemptions and 30% of the redemption fee for referred redemptions) while maintaining ample incentives for users participating in the referral program.

Test Cases NA