FeSwap governance #
FeSwap heartfully embraces the tenet of decentralized governance of neutrality and trust minimization, so the governance framework will consider comprehensively all kinds of people who have made and will make contributions to the development of FeSwap.
FeSwap will issue FESW ERC20 tokens as the tool for the decentralized community governance, the total supply of FESW token is 1 billion. All FESW tokens are minted at the genesis and released gradually over the 5 years course:
- FESW Name: FeSwap DAO
- FESW Symbol: FESW
- FESW Total supply: 1,000,000,000
- FESW Inflation: 0
The target issuance members include all kinds of people who help FeSwap to set up, grow and strengthen:
- Swap pair creators
- Liquidity Providers
- FeSwap exchange users
- FeSwap community members
- FeSwap developers
- FeSwap market promoters
- FeSwap founders
- FeSwap open source technology providers
FESW allocation #
FESW allocation rules are as follows:
1%: Vitalik Buterin. Thank him for his contribution to the creation of the Ethereum system, and grant him the right to participate in the FeSwap governance;
1%: Uniswap. FeSwap reuses part of UniSwap's open-source technology, thanks UniSwap for its technical contribution to FeSwap, and grant Uniswap the right to participate in FeSwap governance;
10%: FeSwap founders, with 5-year vesting:
| Year | Release proportion | Release amount |
|---|---|---|
| Year 1 | 4% | 40,000,000 |
| Year 2 | 2% | 20,000,000 |
| Year 3 | 2% | 20,000,000 |
| Year 4 | 1% | 10,000,000 |
| Year 5 | 1% | 10,000,000 |
- 20%: Project team, of which 16% with 5-year vesting, and 4% for strategic reserve:
| Year | Release proportion | Release amount |
|---|---|---|
| Year 1 | 6% | 60,000,000 |
| Year 2 | 4% | 40,000,000 |
| Year 3 | 2% | 20,000,000 |
| Year 4 | 2% | 20,000,000 |
| Year 5 | 2% | 20,000,000 |
| Strategic reserve | 4% | 40,000,000 |
20%：to all bidders participating in the FeSwap [Trading NFT] (NFT.md) auction, and to financial sponsors of the FeSwap project.
15%：FeSwap liquidity providers，distributed in 3 years:
| Year | Distribution proportion | Distribution amount |
|---|---|---|
| Year 1 | 9% | 90,000,000 |
| Year 2 | 4% | 40,000,000 |
| Year 3 | 2% | 20,000,000 |
- 15%：FeSwap exchange users，distributed in 3 years:
| Year | Distribution proportion | Distribution amount |
|---|---|---|
| Year 1 | 9% | 90,000,000 |
| Year 2 | 4% | 40,000,000 |
| Year 3 | 2% | 20,000,000 |
- 10%: to community members participating in community governance voting, distributed in 5 years. If the distribution is not completed in the previous year, roll into the next year:
| Year | Distribution proportion | Distribution amount |
|---|---|---|
| Year 1 | 2% | 20,000,000 |
| Year 2 | 2% | 20,000,000 |
| Year 3 | 2% | 20,000,000 |
| Year 4 | 2% | 20,000,000 |
| Year 5 | 2% | 20,000,000 |
- 8%: to FeSwap foundation, used to cultivate and improve FeSwap ecosystem, with 5 years vesting:
| Year | Release proportion | Release amount |
|---|---|---|
| Year 1 | 2% | 20,000,000 |
| Year 2 | 2% | 20,000,000 |
| Year 3 | 2% | 20,000,000 |
| Year 4 | 1% | 10,000,000 |
| Year 5 | 1% | 10,000,000 |
Community governance #
Current governance voting statistics of UniSwap and etc. showed that the voting turnout is some low. The main reasons are estimated to be:
- Users need to pay a certain voting cost to participate in community governance voting;
- Most community proposals have no direct interest with users;
- Users can still vote with their feet even if they don't participate in voting.
To attract community members to actively participate in voting for governance proposals and become more involved in community events, FeSwap will distribute 2% of FESW to all the voting participants every year.
To attract more liquidity providers, FeSwap will distribute 15% of the total amount of FESW tokens in a ratio of 9%, 4%, and 2% over 3 years with the yield farming mechanism.
To attract more exchange users, FeSwap will also distribute 15% of the total amount of FESW tokens in a ratio of 9%, 4%, and 2% over 3 years. The distribution rule will comprehensively consider the exchange frequency, exchange amount, and the relationship to trigger internal swap pair arbitrage.