Frax Finance is considering a similar Uniswap reward mechanism for token stakers

Feb 26, 2024
CEO Sam Kazemyan stated that the final decision on the implementation of a reward mechanism similar to Uniswap will be made by the community.
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The Frax Finance team is considering a proposal to share the revenue from the protocol with the owners of the veFXS token. According to Kazemyan, the community should approve this proposal.

If the proposal is accepted by the Frax community, they will follow the path that was chosen last week by the leading decentralized exchange Uniswap.

The core team behind the Frax Finance decentralized finance protocol may soon repeat the mechanism of the leading decentralized exchange Uniswap on the distribution of a portion of the protocol fees among the owners of its own token.

Recall that the token of management and utility of the ecosystem is FXS. Users who block their FXS receive veFXS tokens, allowing them to retain their management rights. veFXS tokens can be placed on the main Ethereum network and initially on L2 Frax Finance, Fraxtal. When agreeing on a new mechanism, it will be recommended to share the proceeds from the protocol with veFXS stake holders. Earlier, in 2022, the Frax community voted to end income distribution.

Last week, Uniswap proposed rewarding UNI token holders who stake and delegate their tokens with a portion of DEX commission income. The community approved this proposal, after which the cost of UNI increased by 60%. The markets saw an increase in the value of other DeFi tokens COMP, AAVE and SUSHI.