AIP 4: Fee Split Rewards for Token Holders

Migrated from AIP 4: Fee Split Rewards for Token Holders · Issue #4 · airswap/AIPs · GitHub

Summary

AirSwap has historically struggled to adequately drive demand for the AST token, in spite of the various mechanisms employed to do so. The only solution to this problem, may perhaps be the simplest; reward token holders with a portion of all tokens traded on the AirSwap network. All previous AIPs will increase the number of AST tokens in circulation, and increase sell pressure. There must be a countering force to encourage individuals to both keep and accumulate AST tokens.

Specification

Like many other projects, Polkadot, Ethereum, etc, AirSwap can provide the facility for token holders to stake their AST tokens and be rewarded, not just with AST tokens, but whatever tokens are traded on the network. This was successfully implemented by Coss (now Cos), and other exchanges. This ensures that the tokens themselves have intrinsic value.

Rewards can be calculated based on the number of tokens staked, and contributions to voting and general governance.

Rationale

This proposal aims to counter the sell pressure that will be created by airdrops and AST rewards given to liquidity providers. It is absolutely necessary to drive demand for AST while ensuring token holder engagement, and by extension, the success of the project.

Copyright

Copyright and related rights waived via CC0.