TechFlow news: The FXS community has proposed a governance proposal to allocate 75% of Frax Protocol revenue to veFXS stakers and redistribute the remaining 25% to the treasury.
The proposal initiator stated that the protocol has been selling FXS to re-collateralize FRAX (a rational choice), but believes that switching strategies in this market—though seemingly counterintuitive—could accelerate re-collateralization. Shifting from selling FXS to using protocol revenue to buy back FXS for redistribution would boost the FXS price, improve sentiment, strengthen community confidence, further drive FXS appreciation, increase activity on Fraxtal, and encourage more veFXS locking. It would also increase the distribution and amount of FRAX in the FXS/FRAX LP, contributing to the collateral ratio (CR) and ultimately advancing toward the mission of achieving 100% CR.
