stargatefi

Background:

In June 2022, STG holders determined that transaction fees should be accrued to STG holders who stake their STG. To further implement this governance decision, governance should establish: (i) a methodology to determine the timing of fee accrual, (ii) a methodology for calculating fee accruals for each chain-address, and (iii) a fee claim process.
For details regarding fee apportioning, see the previous proposal.

(i) & (ii) Timing & Calculation Methodology of Fee Accrual: veFee Calculation Constants

• feeStartDate (UNIX) = 1654947275
  • Timestamp of the initial veSTG fee proposal approval on snapshot.
• veFee Interval (in seconds) = 3600
  • One hour
• Monthly UTC start & stop timetamps
  • Month start on first day of the month at UTC 00:00:00
  • Month stop on last day of the month at UTC 23:59:59

veFee Calculation Methodology

1. At each interval within the month, calculate veSTG balances for each address.
2. Over each hourly interval, calculate the fees accrued for veSTG stakers.
3. With this data you should have the following for each hourly interval:
   1. Individual veSTG balances at end of interval
   2. Total veSTG balance at end of interval
   3. veSTG fees accrued during interval
4. Calculate individual veSTG fee accruals based on: veSTG Fees Accrued * (Individual veSTG Bal / Total veSTG Bal)
5. Sum individual veSTG fees accrued over the month period for distribution.

(ii) Proposal - Fee Claim Process: veSTG Fee Allocation & Collection Process

• veSTG stakers will claim their rewards on the blockchain they’ve staked.
• On the 10th of every month, the protocol will allocate the previous month’s reward for veSTG holders.
• Rewards will be made in the token in which Stargate’s POL is the largest for that given chain.
• After allocation, veSTG holders can complete a claim function by submitting the period of claim, formatted by by YYYYMM, i.e. 202207
• The front-end should have a user-friendly interface that allows users to claim their pending fees.

Success:

The above proposed collection method shall be implemented. STG holders that stake can claim veSTG rewards. Execution:

The redemption contract shall be implemented and audited with the claim functions available for veSTG holders to claim veSTG fee.

Summary: This proposal lays out a framework for how veSTG fees are calculated and distributed to veSTG holders. Fees are distributed to veSTG holders monthly. The actual distribution occurs on the 10th of every month based on the fees that were accrued in the previous month.