This is the second of four parts of a community drafted proposal that originated from Discord chat and being moved here-
Purpose: The goal of this proposal is to further align the interest of the stakeholders (capital provider, cover buyers, liquidity provider) and the DAO as a whole by encouraging long term stakeholders. We would like to encourage and attract long term capital and liquidity providers as well as provide additional value and utility to long term stakeholders in USF.
A. Profit sharing from Asset Management and premiums: A TBD percentage of Asset management and premium yield goes back to the DAO and then voted on for Distribution. (Likely includes stakers)
B. Fees from short term capital/cover buyers- Liquidity miners that remove their capital before one full epoch will incur a X% fee, in the crypto asset provided (e.g. ETH, DAI, WBTC), that is transferred to the treasury. Capital miners that exit before two full epochs will incur a X% fee, and capital miners who exit before 3 full epochs will incur a X% fee. There will not be any exit fees for capital miners who supply capital longer than 3 full epochs.
C. An option was discussed that mentioned the longer you stake your USF, the higher your % of the fee/proft sharing would be. To reward long term commitment, we could modify the above proposal with an option to lock up your USF and your share of the rewards = staking + lock over a period of time