IIP-180: Reduce dsETH Fees

IIP: 180
Title: Reduce dsETH Fees
Status: Proposed
Author: @mrmadila
Reviewer: @allan.g
Quorum: ~627k (10% of Circulation supply of $INDEX)

Date: 02 Nov 2023

Simple Summary

This proposal presents the opportunity to INDEX holders to reduce the dsETH Streaming fee from 25bps (0.25%) to 0bps (0%) as recently discussed in this previous forum post.

Abstract

The current fee structure of dsETH is as shown below:

Streaming Fee: 25bps

Mint Fee: 0bps

Redeem Fee: 0bps

After additional market research and collecting feedback from core customer categories, we would like to propose that fees be reduced as shown in the specification below.

Specification

Streaming Fee: 0bps

Mint Fee: 0bps

Redeem Fee: 0bps

Motivation

The objective of reducing dsETH fees to 0% is to increase access to staked Ethereum yield and encourage greater staking participation. If successful, the adoption of dsETH will reward decentralisation efforts and help secure the Ethereum network, and consequently help the product gain traction and promote awareness of Index Coop’s overall brand.

Voting

FOR: Eliminate 25 basis points (0.25%) Streaming Fee for dsETH in accordance with the specification.

AGAINST: Make no change to dsETH fee structure.

Copyright

Copyright and related rights waived via CC0.

5 Likes

Strongly in favor of reducing dsETH fees to zero.

2 Likes

The snapshot vote for reducing dsETH fees to zero will go live at 14:00 UTC time today.

We also agree with the proposal, but only if temporary, not permanently until the product is widely adopted.

1 Like