Protocol Revenue Split is LIVE
Today, as per RGP-13, the fee switch that distributes 50% of protocol revenue to RBN lockers is now turned on! This further aligns RBN lockers with protocol success and kickstarts a positive feedback loop at the heart of Ribbonomics. As protocol revenue grows, users become more incentivized to lock RBN, which creates a supply sink for RBN that could boost the value of RBN, which makes vault staking APY more attractive, which in turn attracts more TVL and grows protocol revenue.
Since the protocol revenue split proposal was passed months ago, protocol revenue earned starting from the week of Feb 27 2022 up until today¹ will be retroactively rewarded. Furthermore, RBN lockers starting from the week of Feb 27 2022 will be retroactively rewarded. In other words, those who locked RBN end of February will have earned more² rewards than those that locked in April, all else being equal.
RBN locking APY is currently 65.8%³. This does NOT include APY derived from gauge emissions boosts, gauge voting, and/or bribing income⁴. Protocol revenue fees are distributed on a weekly basis every Friday.
Claim your rewards and lock $RBN today at https://vote.ribbon.finance/.
With this fee switch being turned on, $RBN lockers now receive:
- 50% of protocol revenue
- Gauge emissions boosts
- Governance voting
- Gauge emissions allocation voting
- Gauge emissions bribes will go live next week and gauge boosting bribes will go live in 1–2 months.
[1] Transaction that sends protocol revenue earned during end of february-april from the multisig to the fee custody contract
[2] Imagine Alice locks X $RBN for 1 year on week 1 and Bob locks X $RBN for 1 year on week 4. Alice will have earned 100% of the 50% protocol revenue earned between weeks 1 to 4. After week 4, Alice will split 50/50 with Bob. Even though we only “launched” protocol revenue on week 4, Alice will have earned rewards from the weeks prior
[3] Annualized protocol revenue is $9.35M according to tokenterminal. 50% goes to RBN lockers. At current RBN prices, $7.1M worth of RBN is vote locked. So, we get $9,350,000 * (50% for RBN lockers) / $7,100,000 = 65.8% APY. Note that your actual APY will vary based on the lock duration from 0–2 years, but 65.8% is the average. See this dune dashboard for some insights
[4] RBN lockers also have gauge emissions boosts in $RBN if they have vault tokens staked. They also have voting power for gauge emissions. Finally, they will have the ability to accept bribes for either of these two powers to still earn income without vault positions
