Distribute 50% of revenue of Flash Trade to $FAF Stakers

Overview:

This is a multimodal Proposal. Should the proposal pass Flash Trade will distribute 50% of its fees to $FAF Stakers. If not then 50% of fees will be used for growth and marketing efforts for the platform. This will be carried on for 6 months after which this proposal will be revisited.

As outlined in the FAFtarchy Commandments, this is our first official proposal to let markets guide protocol direction.

A detail discussion by the community members can be found in our discord Flash Labs

Motivation for Revenue Share?

Revenue sharing brings immediate value to FAF holders by directly tying staking to protocol earnings. By allocating a portion of the fees to stakers, we reinforce the idea that FAF isn’t just governance—it’s ownership.

This would introduce a recurring return mechanism, reward long-term belief, and possibly attract more users and capital seeking sustainable yield. The structure is fair, transparent, and keeps incentives aligned.

FAF was designed and launched in a manner that maximizes alignment between the team and the growth of the token and platform. It has been observed that some users perceive a gap in the cycle where they believe that the token does not benefit from any growth in the protocol in a monetary sense and is solely reserved as a governance and utility token (despite the initial token mechanism outlining RUG = Revenue Utility and Governance).

The growth of the protocol is perceived in the form of fees and revenue, which do not flow to the token but instead to the team. With this new distribution of 50% revenue to the team and 50% to FAF, it aligns the interests of the team with that of the token. This completes the loop of both team and FAF holders benefiting from the growth of the platform in a clear and transparent manner.

Counter argument to why Growth over everything?

On the flip side, we could reinvest revenue into growth i.e doubling down on user acquisition.

We’ve seen a slowdown in new user momentum. A more aggressive strategy across trader rewards, media partnerships, and community-led initiatives might be what Flash needs to unlock the next leg up.

If this proposal does not pass, the team will allocate a portion of protocol revenue towards a detailed growth campaign with full transparency on spending and KPIs.

There can be an aggressive push to local communities focused activation and growing flash trade around many regional communities.

The Proposal: Fee Sharing Structure

The new fee distribution mechanism proposes an equal 50-50 fee share between the team and FAF stakers for FLP pools.

• 70% of fees → LPs
• 15% → FAF stakers
• 15% → Flash team

This ensures long-term alignment between stakers and the team—two halves of the same whole.

💡 Note: This proposal would remove the current yield booster mechanism.

The revenue distribution will be based on the time based stake weight of $FAF per epoch and will be distributed as USDC on a weekly basis or daily subject to team’s design of the mechanism.

Subject to revaluation in 6 months

This proposal is valid for 6 months post-implementation. At the end of this period, we’ll evaluate outcomes and revisit with new data.