TIP10 - Miner fee reimbursement plan for relayers

Tokenlon
  • Updated

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Background

  • According to the design of the Tokenlon protocol, the relayers responsible for matching orders can pay Ethereum miner fees for some users’ transactions
  • The design of relayer paying the miner fees can increase the success rate of users' trades therefore bring a better user experience
  • As part of the treasury design, the fees collected by Tokenlon protocol will be first used to reimburse relayers the miner fee paid by them
  • As of March 22, 2020, Tokenlon 5.0 has accumulated more than $10 million in fees, including 2,987 WETH
  • As of March 22, 2020, the Tokenlon relayer has paid 2,560 ETH in miner fee for users
  • Based on the above data, it is estimated that 85% of WETH collected by Tokenlon protocol needs to be used for reimbursement of miner fees paid by relayers
  • Therefore, WETH part of fees collected by Tokenlon protocol will be directly (partially or fully) transferred to the treasury for reimbursement
  • Transferring WETH directly to the treasury can avoid the additional expenses caused by exchanging WETH to LON and then exchange for ETH
  • The data provided above can be viewed and verified with the Dune Analytics dashboard here

Goal

  • Let the community decide on the miner fee reimbursement plan for relayers

Proposed Action Items

  • Implement according to the voting result and will take effect when the LON buyback is launched

Voting Rules

  • Addresses with LON balance greater than 0 can vote
  • Addresses participating liquidity mining can vote (including unclaimed LON reward)
  • Addresses with LON LP token can vote
  • LON balance snapshot block: 12100200
  • Voting start time: 2021.3.24 7:00 UTC
  • Voting end time: 2021.3.26 7:00 UTC

Voting Options

  • A. The percentage of WETH transfer to treasury will be dynamically adjusted according to the actual cost of miner fee paid by relayers. At the beginning:
    • 80% of WETH will be directly transferred to the treasury for reimbursement
    • 20% of WETH will be used to buyback LON and then transferred to the LON staking pool to reward LON staking users
  • B. 100% of WETH collected will be directly transferred to the treasury:
    • It will be first used to reimburse the miner fee paid by relayers,
    • and then, the surplus will be used to provide liquidity for the LON/ETH AMM pool in the future

Join the Voting

 

If you meet any problems while voting, feel free to share your opinion on Tokenlon forum or join our Discord to contact us.

 

Tokenlon,

2021.03.24