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:
Implement a fee system where 4 basis points are charged per rebase.
Distribute these collected fees to $BLAST holders on a weekly basis.
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.
I would just add that it would be imperative to include in any snapshot all forms of $BLAST that may be staked with various protocols, including Wasabi. I would also suggest including a financial report with each distribution that covers the fees and yield collected over the previous 7 days along with a .csv that lists all the wallets that received weekly treasury distribtutions. In addition, it could be a good idea to include a staking option where the user could claim the fees to an account that locks the fees for 1, 3, 6, 9, 12 months for increasing bonuses to their Blast S2 point accrual on those earned funds. This bonus may or may not impact their overall points accrual for liquid funds held on the Blast chain.
