In a previous discussion: Fee Generation and the SSM
Fee accrual and distribution was discussed with reference to potential buyback and various potentialities regarding the utlization of the Swivel Safety Module.
In this proposal we discuss moving towards the first step of this fee accrual – Withdrawing fees from Swivel.sol
SIP (#002): Fee Withdrawal & First Actions
After minimal discussion on: Fee Generation and the SSM
There may not have been significant input nor consensus upon a method of distribution, however there is minimal consensus that the fees should be withdrawn and potentially utilized.
With this in mind, the first step of moving forward with the management of fee accrual is proposing the first withdrawal of USDC fees with the intention of a community sponsored fee utilization program in the coming week.
With that in mind, I’d like to propose to allow our multisig to withdraw the ~65,000 USDC of fees currently sitting in our contracts.
Next steps as far at utilization will be voted on immediately upon the conclusion of the fee withdrawal, with buybacks likely based on the current community support, and further distribution to be determined as governance discussion permits.
Each voter will be able to either vote to support or oppose this immediate fee withdrawal, alongside future withdrawals on a roughly ~monthly basis.
Given the relatively straightforward nature of this proposal, the quorum will be representative of the proposals severity.
This is a good idea, but I think it would be better for a small investor to replace 65k
I hope this does not cause the price of SWIV to fall
The gradual exit of this 65k may seem logical, and it will happen over a period of time
Im not sure how accruing fees and realizing them alongside our SSM program would do anything but lead to upwards price movement, but regardless the priority should never be the price of our governance token but actual utilization of the protocol and the safety of our mechanisms.
That said, I’d try to focus on exactly how fees can be utilized rather than any price momentum or direction
It is better to leave 65k on the days when BTC is traded positive.
In any case, this is a possibility that it will not have a negative impact on the price of SWIV.
Just clarifying here because it seems like amir (as well as another person in our discord that pmed! <3) have some tiny confusion as to the fee accrual.
These are fees in USDC that have already been accrued to our smart contracts. These fees are not the result of selling or transacting SWIV tokens at all, but the result of fees generated by volume through our protocol.
With that in mind, the act of withdrawing fees has no impact on the SWIV governance token unless there are further proposals to enact distribution methods through something like the SSM (in which case SWIV circulating supply may reduce). That said, I want to again emphasize that our team, nor our community, should be making product decisions with the price of our governance token in mind.
Generally I will avoid mentioning any interactions like that at all in the future outside of reminding the community that these two apexes should each be considered in isolation.