Supporting the protocol’s growth and sustainability

Governance
1

Abstract

To support the protocol’s growth and sustainability, the treasury agreed to sell up to 100,000 FXN at a fixed price of $10 per FXN in fxUSD. Purchased FXN will be locked as veFXN for a minimum of 2 years.

Motivation

f(x) Protocol continues to develop and ship. The broader market environment is challenging, but we are confident in the long-term vision for the protocol and its token, FXN. Additional working capital will allow the team to execute on the product roadmap without distraction.

Selling from the treasury on a fixed schedule with mandatory veFXN locking ensures no market disruption and guarantees buyer’s alignment.

f(x) Protocol has voluntarily vested the FXN held in the treasury for 2 more years. To honour the FXN payments, the Aladdin DAO treasury will lend the required FXN to f(x) Protocol’s treasury. These FXN will be repaid progressively as they unvest.

Specification

- Token: FXN

- Total quantity: 100,000 FXN

- Price: $10 per FXN, payable in fxUSD

- Lock-up: veFXN, minimum 2 years

2

Sounds like a great proposal. Hopefully the market turns around quickly and we get a full blown bull market for DeFi.

2 quick questions:

  1. Who will take possession of the yield generated from the veFXN?
  2. Will the team be active or abstain from using the veFXN in any governance or gauge votes?