This proposal details the distribution of fees amongst the ARTH, ARTHX, and MAHA holders and proposes that a portion of the fees collected is used to perform a burn-back of MAHA tokens.
It’s pretty certain that one of the main factors for MahaDAO’s growth is the revenue that the protocol generates via fees. There are four parties in the ecosystem to whom fees need to paid out to.
- ARTHX holders: ARTHX holders besides the deflationary mechanics are also given a share of all the fees collected.
- Users in the Debt pools: Users in the debt pool need to be paid back. This includes users from ARTH v1.
- The MAHA Ecosystem fund: A fund used to specifically grow the MahaDAO ecosystem
- MAHA holders: in some way or form.
The proposal here is to use the fees collected to perform a buyback and burn of MAHA tokens from the existing market. This creates a relation for the MAHA token’s value to the growth of the ARTH’s TVL.
Further, this burn back of MAHA needs to only happen for the first 12-18 months of MAHA’s lifetime since during the first 12 months, the MAHA token has a very high inflation rate (2%/mo) but starting from month 13 the inflation drops significantly (0.5%/mo).
This proposal suggests the following distribution of fees to be utilized for the next 12 months:
- ARTHX holders: 25%
- Users in the debt pools: 25%
- MAHA Ecosystem Fund: 25%
- MAHA burn: 25%
- Approve AIP17
- Reject AIp17