Proposal Details
Proposal #51
Proposal title
Implement a fee-sharing mechanism
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Proposal #51 description
TL;DR
Implement a fee-sharing mechanism, where half of the transaction fee of a smart contract execution will go to the contract’s recipient address which is defaulted to the creator address, and the other half will go to stakers as per usual. The proposed mechanism can potentially become a permanent incentive source for developers based on the raised user activity, in the form of executions, towards their developed smart contract.
Introduction
Junø is the go-to smart contract zone in the ecosystem, due to its permissionless interoperability and lively community. One of the main keys to grow and expand the core value of a smart contract platform is reflected by the applications and projects built on it, besides to the developers/contributors. Therefore, we intend to seek ways and methods to attract healthy development on Junø and promote the effectiveness behind adopting our platform to launch web3 applications. Such methods included offering grants, Hack Juno rewards, or community-pool based funding approved via governance. But what if the chain offered built-in incentives for development on Junø? Will it attract further development and contributors to begin landing on Junø?
Contributor Fee-Based Incentives
The proposed solution is constructed around rewarding developers based on the overall user interest in what has been developed, which is potentially a longterm continuous reward. For each smart contract, there will be a fee recipient address which is defaulted to the creator address. The fee split parameter would be configurable via governance. As of now, we propose a 50/50% split. For each transaction which executes the smart contract, 50% of the transaction fee is distributed to the fee recipient address. The remaining 50% is distributed to stakers. This mechanism allows developers to be fairly rewarded as long as their development is raising activity and users are transacting with their smart contract. Fee distribution will not require voting or permission, and acts as longterm potential revenue, which can attract more developers to build on Junø.
How Contributor Incentives can commend DAOs
One of the optimistic outcomes will be the integration between DAO treasuries and on-chain smart contracts, where the treasury address can be the contract’s fee recipient address to receive fee-based incentives. For example, JunoSwap can set the RAW DAO treasury as the contributor address, where 50% of the fees collected by JunoSwap transactions will be automatically received by the RAW DAO.
Postscript
This is a signaling proposal to evaluate the community’s interest in the proposed “Contributor Fee-Based Incentives” mechanism. Accordingly, the dev team will begin working on the implementation. The proposed mechanism will not reduce or exclude the presence of other incentive programs such as Hack Juno, grants, or governance-approved funding.
Voting
- By voting YES on this proposal, you agree that the fee sharing mechanism should be implemented.
- By voting NO on this proposal, you disagree that the fee sharing mechanism should be implemented.
- By voting NO WITH VETO, you disagree that the fee sharing mechanism should be implemented, and additionally intend to contribute towards proposal rejection and burning of proposal deposit if NoWithVeto votes are greater than a third of voting power.
- By voting ABSTAIN, you decline to give an opinion on the proposition.