Curve Finance votes to distribute $ 3M in charges to governance token holders
Curve Finance, a decentralized exchange, will distribute nearly $ 3 million in accrued fees to governance token holders on the platform following a community vote.
On Friday, a one-week voting period was closed to determine how the "management fees" should be distributed in favor of the token holders. Now, in three days' time, $ 2,631,601.92 in fees incurred prior to the start of the voting will be pouring into the coffers of community members.
The log will continue to pay weekly fees after that initial payout, Curve CEO Michael Egorov told CoinDesk.
Curve's recent vote could be seen as a successful exercise in distributed governance, encouraging platform users to participate in the game using Skin. The vote was carried out unanimously with 95 votes, representing 49.75% of the total eligibility pool.
This point is even more emphatic when one considers the confusing origins of Curve's governance token. In August, an anonymous DeFi user, without his knowledge or consent, deployed preventive smart contracts for the decentralized autonomous company and token the team was building.
The Curve team passed the front run code due to the strong community interest during the heyday of governance and income farming liquidity.
In order to be able to vote, users have to put CRV tokens on the voting contract of the protocol, which then supplies the users with veCRV and thus creates a kind of voting escrow account. As of September, veCRV holders have earned half of the 0.04% trading fee charged by the protocol, with the other half going to liquidity providers.
"The vote for this split has already taken place in the past and the current vote enables the code to trustfully distribute the fees to veCRV token holders now and in the future," said Egorov. "While we were writing and testing the code, there were $ 3 million in fees in 69 days waiting to be distributed."
Curve is the sixth largest DeFi protocol with cryptocurrencies valued at around USD 882 million, which are set out in the various smart contracts. According to DeFi Pulse, token trading has been flat since the governance vote was in place.