As a fond advocate of IDLE, I found myself coming to the same conclusion, increase the value proposition of IDLE’s business model.
I believe that the 10% fee is a major step in the right direction
As I begin to see the vast potential for the DeFi space as a whole, I see the reality that IDLE can truly establish itself as an industry leading protocol that’s widely integrated in the ever expanding DeFi space.
This presents an amazing opportunity to own part of this amazing protocol at an early stage in the industry. So, currently one can purchase IDLE and now hold a share of the protocol and participate in governance whilst owning a part of profitable decentralized protocol.
However, upkeep is upkeep. Governance means responsibility. Right now, owning coins to participate in voting is not a good value proposition to the naked eye which cannot see the bigger value proposition down the line as IDLE begins to take “Defispace Share”.
This is quite simply due to the fact that IDLE currently doesn’t have a high fee structure. However, this is good as we’re trying to onboard as many potential platforms/protocols as possible, and less fee’s mean more investors trying the protocol for the first time. Once they’re hooked, the trial fee can expire and increase to a higher rate that can help fund governance and/or team. This would then open the fee floodgates which would stream back to the dedicated governance token holders. Therefore, creating incentives that will contribute to bringing more governance token holders as well as increasing TVL.
With this in mind, the protocol needs to balance its timing with adjusting the low fee’s for early onboarding incentives and factoring in the value of the governance token over time.
I believe these are several ideas to flesh out:
- Timeline on increasing fee’s to generate profit for governance token holders
- Developing Scarcity: Owning 1 Idle = true ownership of a profitable DeFi protocol. This should highly incentivize people from all walks of life to participate. That way, those holding IDLE see appreciation in both the value of their IDLE and their share of the fee’s the platform generates.