Centrifuge Protocol Fees

Centrifuge Governance Governance discussion
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Hi All,

My thoughts below:

  1. If the circulation of CFG continues to increase then it will continue to be debased.
  2. Asset Originators (of which we are one) should be paying CFG fees now for minting NFTs
  3. Those fees should have a minimum and then be related to consideration / monetary value of drawn down funds on each NFT as this will volume weight the costs fairly vs the utility derived
  4. The fees should not be sent to the on-chain treasury but instead be sent to a warehouse which is then burnt on a regular basis.
  5. Fees in aggregate should be larger than issuance, constricting the supply of CFG
  6. Only the issuer need pay fees, as funders will be paying indirectly as the spread between issuer income and issuer rewards to funders will widen to cover the cost of transactions.
  7. $80M TVL is tiny in the world of finance. Many of the A/O’s can deploy multiples of that amount of capital on their own (eg Amazon seller financing for just the top 20% of sellers is many billions of dollars) so fees will be able to drop over time.
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