In a recent Uniswap report, Frax Finance, a decentralized finance (DeFi) protocol, is considering a new proposal to reward veFXS token stakes with a share of platform revenue. This move mirrors a similar strategy unveiled by Uniswap, which plans to distribute fees to UNI token holders.
Initially, Frax Finance’s community had voted against revenue sharing in 2022. However, with Frax’s annual revenue now reaching eight figures, CEO Sam Kazemian believes it is time to revisit the idea. If approved, the proposal would mark a major shift in Frax’s incentive structure, empowering veFXS stakes to influence the protocol’s direction.
Frax has taken to social media to garner feedback on the proposal from the crypto community. Responses so far signal optimism, including support from analysts like Ignas and the decentralized exchange Curve. With community input underway, the revenue-sharing plan represents an exciting new chapter for Frax Finance as it rewards veFXS holders for their role in governance.
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