This is the fourth 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.
- To distribute the profit/fees, we will tokenize the staked USF in the pool (sUSF) representing a holders portion of the USF in the pool. As the profits/fees increase, the ratio USF per sUSF increases. The benefits of doing so are outlined below
- You can continue to stake your USF in this pool while also participating in voting by using your sUSF token for voting. This may require some additional work or the core team, but removes a barrier to voting by saving effort and gas costs and encourages those with staked sUSF to vote.
- This serves as the main distribution mechanism and minimizes transaction costs as well as creates additional buy pressure on USF.
- The concept of sUSF also introduces additional use cases such as using sUSF for collateral on other platforms or future utility.
- One way this could be accomplished in the existing structure is by having some type of a DAO within a DAO. Basically USF holders would be voting directly with their USF tokens on the unslashed DAO and sUSF holders will be voting in a sUSF DAO and the winning side of the sUSF vote will see their decision/vote sent to the Unslashed DAO with the whole sUSF voting power