Rari Foundation

Abstract

This proposal suggests altering the Rarible protocol’s fee structure to create a protocol fee of 0.5%. The revenue generated from this fee would all go to the RARI DAO treasury. This will enhance the DAO’s financial resources and create more alignment between users and the DAO.

Motivation

Implementing a fee structure that directs fee revenue will help bolster the sustainability of the RARI DAO. It will also create more autonomy for the RARI DAO as the DAO will not have to rely on external capital and will instead have more resources available to fund DAO initiatives. This will help with the progressive decentrilization of the DAO and make the DAO stronger for the future.

Rationale

The proposal aligns with RARI DAO’s mission of broadening the NFT use case horizon by creating a creator-centric and fully decentralized robust ecosystem. By channeling revenue to the DAO treasury, it enhances the financial stability and resilience of the protocol, enabling further development, community initiatives, and long-term sustainability. This helps to address the Long term sustainability of the DAO, which is one of the three core values of the RARI DAO.

Specifications

Since the protocol’s contracts are fully controlled by the DAO, the on-chain Tally proposal can automatically update the fee structure using Tally’s executable code feature.

The proposed fee would be 0.5% (0.25% seller fee + 0.25% buyer fee). All 100% of the Protocol Fees will be sent to the RARI DAO treasury to help bolster the autonomy and long-term sustainability of the RARI DAO.

Steps to Implement

• DAO discusses appropriate fee structures.
• Tally proposal is created with executable code to update fee structure and direct revenue to the DAO automatically
• Implement new order version with enabled protocol fees

Timeline

• 1 week for the DAO to decide on fee structure and provide opinions on the proposal
• 1 week for Tally vote
• Time for the protocol team to implement new order version with enabled protocol fees
• Upon the passing of the Tally vote, the contracts will automatically be upgraded to reflect the new fees and direct said fees to the DAO treasury

Overall Cost

There is no cost associated with this proposal.