Summary:
As Hashflow scales, it’s critical to ensure protocol fees are used strategically to grow trade volume and revenue. This proposal enables the Hashflow Foundation to retain a portion of protocol fees to support data-driven business development and liquidity optimization efforts.
Overview:
Hashflow’s core growth drivers rely on deep liquidity and taker demand. As trading volume increases, it’s essential to constantly assess where maker liquidity is falling short, how taker flows are evolving, and whether protocol fees are being set at levels that balance competitiveness with revenue generation.
To address these needs, the Foundation will retain a portion of protocol fees and deploy them toward expanding integrations with new market makers and aggregators, optimizing liquidity placement to meet demand profiles, and refining fee structures using real-time data. All of these initiatives are aimed at sustainably growing volume and protocol revenue.
The remaining fees will continue to be distributed according to the most recently approved proposal.
Technical Specification:
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The Foundation will retain a portion of protocol fees to fund growth and analytics efforts
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Fees retained will be used to:
- Source new maker and taker integrations
- Optimize liquidity deployment across markets
- Fund strategic initiatives for protocol growth and optimization
- Analyze and adjust protocol fees based on quote competitiveness and taker sensitivity
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Fee data and usage will remain transparent and verifiable on-chain
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Remaining fees will continue to be distributed according to the current fee distribution logic
Fee Distribution:
Unchanged. All non-retained fees will continue to be distributed according to the most recently approved proposal.
Benefits (Pros):
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Drives more maker and taker integrations
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Improves liquidity efficiency
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Increases protocol revenue without compromising quote quality
Downside (Cons):
- Slightly reduces share of fees distributed elsewhere, but with the goal of increasing the overall pie
