Activate fees for new uTokens

  1. There could be more built-in buy pressure for the UNIC token.
    At the moment, incentives for uToken creators is very high, and not enough value comes back to the UNIC token.

UNIC has:

  • Governance utility
  • Trading volume fees (0.05%) is used to buy back UNIC on the market
    The value props are not high enough at the moment.

On the other hand, most uTokens trade at a market cap premium compared to the underlying NFTs in each collection. Creators can:

  • Take profits by selling fractions of their collections.
  • If whitelisted, they can enjoy several hundred % APR in UNIC tokens.
  1. We can activate the uToken issuance fee using the setFeeToo function on UnicFactory.
    This causes 0.5% of all new uTokens minted to go to a fee address (e.g. if Bob issues 1M uBOB then 5K uBOB is collected by the fee address).
    The fee address can be a smart contract that starts vesting the uToken once liquidity is added for it.
    All uTokens vested by the smart contract can be swapped into UNIC on the market.
    The UNIC can be distributed to xUNIC holders, increasing APR for xUNIC.

  1. Developers have built the smart contract already. Community developers are currently auditing it.
1 Like