This proposal aims to distribute a portion of the fees generated by the Moonwell protocol to WELL token holders. This initiative seeks to enhance the token’s utility, incentivize long-term holding, and strengthen community alignment with the protocol’s growth.
Proposal Details
**Fee Source and Allocation:
** Fee Source: A percentage (e.g., 10-20%) of fees generated from the protocol’s lending and borrowing activities will be allocated to a dedicated distribution pool.
- Distribution Criteria: Rewards will be distributed proportionally to the amount of WELL tokens held by each participant. Tokens in staking pools, compatible wallets, or DApps will also be eligible.
- Distribution Frequency: Payments could occur on a weekly or monthly basis to minimize gas costs and administrative overhead.
- Implementation Plan:
- A smart contract will manage fee collection, conversion (if necessary), and distribution to eligible wallets.
- The allocation percentage and eligible addresses can be adjusted through community governance.
- Benefits:
- Increased Utility: Direct financial benefits from holding WELL incentivize long-term participation in the ecosystem.
- Token Demand: The prospect of passive income can drive demand for WELL, potentially increasing its value.
- Alignment with Protocol Growth: By linking token rewards to protocol-generated fees, holders are directly tied to the platform’s success.
- Governance and Transparency:
- Fee allocation and distribution will be transparently managed through on-chain reporting tools.
- WELL holders will have the opportunity to vote on the exact parameters, such as fee percentages and distribution intervals.