8th Tokenlon community governance TIP10 proposal is released, vote now!

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

• TIP10 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