ParaSwap DAO

Authors

WakeUp Labs

Abstract

This proposal suggests discontinuing the Gas Refund Program to simplify operations, maintain a healthier treasury, and reinforce VeloraDAO’s long-term sustainability. The funds previously allocated to gas refunds would remain in the DAO’s treasury,

Motivation

Since PIP-55, the Gas Refund and Reward distributions have been automated and executed transparently through oSnap + UMA. In addition, simplification changes have already been implemented so that only the gas consumed on Ethereum Mainnet, the only network with significant cost impact, is eligible for refunds.

However, analysis of recent epochs shows that:

• Refunds represent a very small financial impact (≈$1K total per epoch).
• The distribution is highly fragmented, roughly $300 per chain, across ETH, OP, and BASE. (The gas refund program is claimable in the one with your biggest stake).
• Execution requires the same multi-step operational flow (scripts, validation, risks, signers) as the much larger Reward Program.

Given these factors, the cost-benefit ratio of maintaining the Gas Refund Program has become unfavorable.

Data Reference

• Past Gas Refund distributions are publicly verifiable on Snapshot under the Reward & Gas Refund proposals.
• Historical average refund volume: ≈1,000 USD / epoch.
• Last 4 Epochs Data:

Means & Budget:

No extra budget needed.

Implementation Overview:

Handled by WakeUp Labs under the existing Reward Mechanism Automation (PIP-55) framework. No new contracts or tools are required, only some adjustments.

Time of Implementation:

We’re introducing these changes now so that, if agreed upon after the discussion, they can take effect before Epoch 37’s distribution.

Expected Impact

• Simplified operations (one proposal per epoch instead of two).
• More funds in the DAO treasury every epoch.