TBLIP SUBMISSION - Weekly Distribution of Treasury Fees to $BLAST Holders

BLIP - Submission Forum
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Executive Summary: This proposal aims to implement a system where all fees earned by the Blast Foundation Treasury (e.g., USDB/wETH rebasing fees, gas fees) are distributed weekly to $BLAST holders. This initiative is designed to reward $BLAST holders, enhance the value of holding $BLAST within the ecosystem, and provide a competitive edge against ETH and USDB native yield.

Motivation: By distributing a portion of the treasury’s earnings to $BLAST holders, we can incentivize holding $BLAST, increase user retention, and make the network more attractive. This aligns the interests of $BLAST holders with the long-term success of the ecosystem and encourages broader participation and gives a tangible utility to the $BLAST token.

Proposal Details:

  • Current State: Currently, fees collected by the Blast Foundation Treasury are retained for various purposes, but there is no direct distribution to $BLAST holders. The only fee portion that isn’t redirected is the unclaimed gas rebate from dApps.

Proposed Change:

  1. Implement a fee system where 4 basis points are charged per rebase.
  2. Distribute these collected fees to $BLAST holders on a weekly basis.
  3. Distribute all additional treasury fees to $BLAST holders on a weekly basis, including but not limited to unclaimed gas rebates.

Benefits:

  • Increased Incentive to Hold $BLAST: Direct rewards will encourage users to hold $BLAST, reducing sell pressure and a more stable token price.
  • Enhanced Ecosystem Engagement: Regular distributions create an ongoing incentive for participation and engagement within the ecosystem.
  • Alignment of Interests: Aligns the financial interests of $BLAST holders with the overall success of the Blast network.
  • Utility and Competitive Edge: Provides a clear utility for holding $BLAST, making it more attractive compared to ETH and USDB native yield, and gives users a compelling reason to hold the coin.

Implementation:

  • Technical Adjustments: Develop a smart contract mechanism to handle the distribution of fees to $BLAST holders. This will require regular snapshots of $BLAST holdings and proportional distribution of collected fees.
  • Treasury Allocation: Determine the percentage of fees to be distributed weekly while ensuring sufficient funds remain for the treasury’s operational needs.
  • Timeline: Implement changes within this month.
5 Likes
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I agree with this, we might as well distribute all the fees now instead of waiting until we scale. Someone might argue that charging fees like this might affect Blast’s ability to grow, but I don’t think there’s a precedent that fees stopped Maker, Circle, and Tether from gaining market share. Also this would make Blast the first rollup to give its sequencer fees to tokenholders, something that would signal to the market that the Blast team is user and holder aligned

4 Likes
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Love this idea, it would essentially increase the value of $BLAST right away and over time, incentivising further growth. As many have mentioned on twitter regarding this, potentially replace the fee distribution with a buyback and burn mechanism to avoid security law issues. This would accomplish a very simlar goal.

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I hate the burn part of buyback and burn, I much prefer if we bought back and used that Blast to add to the season 2 airdrop, burning just seems like the least productive thing we can do with the Blast we buy on the open market. Alternatively, we could give out developer grants with that Blast or hold it in the treasury for future use, but burning doesn’t help us grow the network in my eyes

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I honestly don’t love the burn either, there are so many other ways the money could be used. We just should find a solution that does not get the SEC staring right at blast, they don’t want that i suspect.

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100%, as long as there’s a legal way to utilize the purchased Blast we should deploy it to grow the network in some way

1 Like