Hey @Whipper, first of all thank you for your suggestion and for your continued engagement within the community.
We wanted to share some important context regarding a proposal that was already passed a few months ago (HIP-7), which laid the foundation for our new tokenomics model, specifically the implementation of the Central Revenue Pool (CRP).
CRP plays a central role in our new tokenomics. It serves as the financial backbone of the system ensuring fair and transparent revenue distribution to stakers without the need for inflation or dilution. One key principle of the CRP is that revenues are not retained, they’re automatically and transparently distributed on a weekly basis. This mechanism is designed to keep the system fluid, predictable, and fair.
Just to clarify the distribution: 95% of CLOB trading fees go to the CRP, which then splits these funds 50/50 between staking rewards and essential expenses.
That’s where your proposal fundamentally clashes with the CRP model: redirecting protocol revenue to seed liquidity would mean withholding these funds, even temporarily which is incompatible with the structure and philosophy the community has already approved via HIP-7.
We hope this helps clarify the design choices the community has made and why they were made. That said, we’re always open to feedback and discussion. It’s great to see new ideas being brought to the table and we’re genuinely curious to hear what the rest of the community thinks about your proposal 