Frax Finance Contemplates Introducing Uniswap-like Incentive Mechanism to Distribute Protocol Fees to veFXS Stakers

Frax Finance Contemplates Introducing Uniswap-like Incentive Mechanism to Distribute Protocol Fees to veFXS Stakers

Frax Finance Contemplates Introducing Uniswap-like Incentive Mechanism to Distribute Protocol Fees to veFXS Stakers

Sam Kazemian, the founder and CEO of decentralized finance protocol Frax Finance, stated in an interview with foreign media outlet CoinDesk that the Frax core team may soon propose a plan similar to Uniswap’s to distribute a portion of protocol fee revenue to the stakers of its native token.

The governance and utility token of the Frax ecosystem is FXS, and users who lock FXS will receive veFXS tokens, which allow them to retain their utility and governance rights. Holders can also stake veFXS tokens on the Ethereum mainnet and Frax’s layer-two network, Fraxtal.

Kazemian mentioned in the interview that the aforementioned proposal will suggest sharing protocol revenue with veFXS token stakers, but whether it can be implemented will depend on the community. The Frax community had previously voted in 2022 to stop revenue sharing.

Last Saturday, Frax Finance announced on X platform that, according to TradingView data, after CoinDesk published this news, the price of FXS briefly surged over 15% but has since fallen to around $9.

Related report: “Uniswap Foundation Proposes Distributing Protocol Fees to UNI Stakers, UNI Surges Over 50% on the News.”