Decentralized Stablecoin Project Frax Finance Passes Proposal to Restore Protocol Fee Switch

The decentralized stablecoin project Frax Finance is advancing the process of restoring the protocol fee switch through a new proposal. In the proposal on Thursday, Frax Finance stated, "We propose to reopen the protocol fee switch, with 50% of the revenue flowing to veFXS and the other 50% used to purchase FXS and other Frax assets, paired in the FXS Liquidity Engine (FLE), which will allow Frax to continue building its balance sheet while significantly increasing the liquidity of FXS and its paired Frax assets."

The proposal also details a new token economic system that will fully collateralize the decentralized stablecoin FRAX, and proposes enhancements to the revenue structure. Regarding the veFXS non-liquid collateral rewards, once this proposal is passed, veFXS collateralizers will receive all protocol fees, which will be added to the veFXS revenue distributor on the Ethereum mainnet, as well as soon on the veFXS revenue distribution contract on Fraxtal.