Proposal TRP-7
Revised Protocol Fee Distribution & Rewards Allocation for Q1 2026
Revised Protocol Fee Distribution & Rewards Allocation
This proposal seeks to update how tread.fi protocol revenue is distributed among stakeholders. As the protocol has scaled significantly in Q4 2025 — with monthly fee revenue surpassing $2.4M — the current allocation no longer reflects the relative contributions of each participant group.
TRP-7 proposes a rebalancing that better incentivizes active liquidity provision and long-term $TREAD staking, while reducing the treasury's share in favor of organic growth mechanisms.
| Recipient | Current | Proposed | Change |
|---|---|---|---|
| Liquidity Providers | 35% | 40% | +5% |
| $TREAD Stakers | 25% | 30% | +5% |
| Protocol Treasury | 30% | 20% | −10% |
| Buyback & Burn | 10% | 10% | — |
Protocol liquidity has grown 3.4× YoY, driven primarily by LP contributions. Increasing LP rewards improves depth and reduces slippage for all users. The staker increase rewards governance participation and aligns long-term token holders. The Treasury reduction is feasible given current runway of 36+ months at current burn rate.
Voting power is determined by TREAD balance at snapshot block #21,840,209.
- Proposer 0x7f4e8b2c…3a91
- Snapshot Block #21,840,209
- Start Date Mar 20, 2026
- End Date Mar 30, 2026
- Voting System Single Choice
- Strategy ERC-20 Balance
- Quorum 30% required