DIP-3 Trading Fees Reallocation and Community Treasury Implementation

Hello CommanDODO's,

Please note that DIP-3 Trading Fees Reallocation and Community Treasury is now fully live and implemented as per the DODO governance framework. Please see below for further information.

Implementation of DIP-3 means that 80% of future trading fees on DODO will be be distributed to liquidity providers (LPs), 15% are to be used for the buyback of DODO tokens which will then be distributed to vDODO holders as vDODO. The remaining 5% are then to be used to fund a community treasury where the DODO community can then vote on where funds are allocated and spent.

vDODO Buyback Process

Due to the nature of fee collection amongst different liquidity pools and differing trading volumes, the buyback process will be handled as follows: every 4 weeks if the balance of the fees received in the contract address is greater than $5,000 USD, a manual transaction will take place that will sell the tokens held (for any token with a balance of $500 USD or more) for DODO to then be distributed as vDODO to vDODO holders. 

For example, if the contract balance is $15,000 then all tokens held in the contract with a balance of $500 or more will be sold for DODO and distributed. Any token under $500 will be held until that threshold is reached and then sold in the next buyback period.  The buyback process will take place every 4 weeks and will be handled by the DODO team at this stage until an automated process is developed.  The first buyback will take place on July 22, 2021.

vDODO Dashboard

As you would have noticed, the vDODO Dashboard has recently undergone a facelift with some new and improved stats which include DIP3 implementation and display of statistics.  CommanDODOs will be able to see stats in regards to shared fee revenue as well as vDODO buybacks distributed back to vDODO holders. The vDODO dashboard can be accessed here. 

Total Number of vDODO Bought Back

This is the total number of vDODO that have been bought back. It’s cumulative. At the moment the number is “0” because there hasn’t been any vDODO buyback yet. The first vDODO buyback will occur on July 22, 2021.

Total Fee Revenue Shared with vDODO Holders

This number refers to the total amount of fees that are yet to be paid to vDODO holders. You can simply think of it as an unrealized dividend for vDODO holders. It’s equal to 15% of the total fee that DODO receives.

Note: There will be a minor UI change on this tile to include pending revenue and total revenue shared in the near future.

Community Treasury

This is the dollar amount that has been allocated to the Community Treasury. The way it’s calculated is that it is 25% of the unrealized dividend that is yet to be paid to vDODO holders.

Stay tuned for more updates and future governance proposals!

#JustDODOit

The DODO Team