Quackonomy update
As you may see in the updated dapp https://app.unit.xyz/, there are no requirements to deposit COL as additional collateral. Now you can mint USDP with selected collateral in just a few clicks. It significantly simplifies user experience and allows the Unit protocol to grow much faster. But what's about the token economy?
Unit protocol collects stability fees and liquidation fees, which will be distributed into the COL token ecosystem.
During the first year, 100% of all fees will go to the protocol ecosystem directly.
We propose 2 efficient ways how to relocate it to protocol token holders:
— use fees to buyout COL from the open market and burn it. 70% of total fees
— distribute fees to governance pool stakers. 30% of total fees
The governance pool will play a significant role in Unit Protocol decision-making system and add stability to the system, so it is essential to incentivize COL stakers and help them be involved in the voting process. We are working on the governance pool, but the infrastructure is not ready yet.
Before the moment when it is operational, all the allocated fees will be used to buyout COL from the open market and burn it. After the governance pool is ready, part of those fees (30%) will be distributed amount stakes. Future changes in governance pool part of fees proportion will be subject to governance decisions.
We think it will help Unit protocol userbase grow faster, and eventually, the total amount of fees distributed to token holders will increase. It will provide better adoption, security, and utility of Unit protocol.