# CP162: Enable Protocol Revenue Through CNF-Managed Fee Flows **URL:** \ **Category:** Centrifuge Governance\ **Tags:** proposals, fees, rejected\ **Created:** [August 13, 2025, 3:42am UTC](https://gov.centrifuge.io/t/cp162-enable-protocol-revenue-through-cnf-managed-fee-flows/7050 "2025-08-13T03:42:26Z")\ **Posts on this page:** 14\ **Page:** 1
**Author:** ![itsbhaji](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.centrifuge.io/itsbhaji/32/2270_2.png) [@itsbhaji](https://gov.centrifuge.io/u/itsbhaji)\ **Post date:** [August 13, 2025, 3:42am UTC](https://gov.centrifuge.io/t/cp162-enable-protocol-revenue-through-cnf-managed-fee-flows/7050/1 "2025-08-13T03:42:26Z")
```auto authors: @bhaji contributors: @martin @imdior uses-component: CP4 technical-proposal: no requires-onchain: yes impacts/modifies: CP143, CP158, CP151 status: rfc date-proposed: 2025-08-12 date-ended: ``` ## Short Summary As part of the Centrifuge V3 migration, onchain protocol fees are not yet supported. To ensure Centrifuge captures value from the growing demand for tokenized RWAs, the Centrifuge Network Foundation (CNF) proposes to temporarily manage fee collection and distribution. CNF will receive all fees generated by Anemoy-managed products and distribute them to key service providers, with 100% of net fees retained by Centrifuge. ## High-level objective Centrifuge is entering a new phase: for the first time, the protocol will begin generating fee-based revenue. In the early days of the RWA market, growth was driven by waiving fees and offering incentives. That strategy worked for early product testing and evolution. Now, the market is shifting. RWAs have become institutionalized and in-demand. Allocators want exposure to high-quality, tokenized products, and Centrifuge is leading the charge. The Janus Henderson Anemoy Treasury Fund (JTRSY) is one of the top five tokenized T-Bill funds by TVL. Its follow-on product, the Janus Henderson Anemoy AAA CLO Fund (JAAA), is on track to become the fastest tokenized fund to $1B TVL. Because protocol-level fee functionality is not yet live in V3, CNF will manage fees for Anemoy. CNF will operate with full transparency and in the best interest of Centrifuge, ensuring service providers are paid, partners are supported, and all net proceeds are retained for the benefit of the protocol. Responsibilities will be transferred back to the DAO when protocol fees are supported. Until then, CNF will provide reports to the Centrifuge DAO. ## Background Centrifuge incubated Anemoy in 2023 to help demonstrate traditional financial institution use cases in DeFi. Anemoy provides a bridge between regulated TradFi structures and Centrifuge infrastructure. This model has proven successful. Through Anemoy, Centrifuge has brought credible institutions and strong products into the ecosystem, driving TVL growth, protocol adoption, and long-term value creation. While Anemoy issues and operates the funds, it is Centrifuge that captures the upside. Managing fee flows properly is key to ensuring that value accrues to the protocol and its community. ## Description of Activity Until onchain fee functionality is live in Centrifuge V3, CNF will take responsibility for collecting and managing fees associated with Anemoy-issued products. This will be done with Anemoy’s independent fund administrator to ensure accurate fee calculation and oversee the distribution of those fees to service providers and partners. The protocol fee of 50 basis points for JAAA will be changed to 0 (zero) to prepare for this change and the coming V3 migration of the JAAA pool. ## Change or improvement - CNF will receive all fees charged by Anemoy for products such as JTRSY and JAAA - CNF will manage offchain calculation and distribution of fees to key service providers - 100% of net proceeds will remain with Centrifuge - Anemoy’s protocol fees will be changed to 0 (zero) ## Alignment to the mission of Centrifuge DAO The Centrifuge Network Foundation is governed by a board dedicated to advancing the Centrifuge ecosystem. The onchain fee infrastructure will soon be available. Until then, CNF will serve as a trusted steward, ensuring value flows back to the protocol, partners are incentivized, and strategic growth is supported. This approach balances flexibility for institutional adoption with accountability to the DAO, helping Centrifuge scale sustainably and remain at the forefront of onchain RWAs. ```auto ``` ---
**Author:** ![0xjulcaesar](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.centrifuge.io/0xjulcaesar/32/3100_2.png) [@0xjulcaesar](https://gov.centrifuge.io/u/0xjulcaesar)\ **Post date:** [August 13, 2025, 2:49pm UTC](https://gov.centrifuge.io/t/cp162-enable-protocol-revenue-through-cnf-managed-fee-flows/7050/2 "2025-08-13T14:49:06Z")
Hi Bhaji! We as TAG, appreciate the context provided in the proposal and understand the need for a smooth transition while on-chain protocol fees are not yet live in V3. To fully understand the implications and maintain accurate DAO-level and treasury reporting, we’d like to clarify the following points: 1. **Fee Structure** – Will previous fee structure remain or will there be a new structure? 2. **Revenue Forecast** – What will be the expected revenue? 3. **Break-even Point** – When the arrangement is expected to break even or become profitable. 4. **Blockers** – Current blockers preventing onchain protocol fee functionality in V3. 5. **Roadmap** – Timeline and milestones for enabling protocol fees onchain. 6. **CFG Token Utility** – Expected impact on token utility and value accrual. 7. **Data Access** – How TAG can get ongoing access to fee and revenue data for accurate treasury reporting. 8. **Reporting Frequency** – How often CNF will report to the DAO on fees collected, distributed, and retained. Clarity on these points will help ensure alignment, transparency, and smooth coordination during this interim phase. — _Treasury Advisory Group_ ---
**Author:** ![The\_Phunky\_One](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.centrifuge.io/the_phunky_one/32/3288_2.png) [@The\_Phunky\_One](https://gov.centrifuge.io/u/The_Phunky_One)\ **Post date:** [August 14, 2025, 3:13pm UTC](https://gov.centrifuge.io/t/cp162-enable-protocol-revenue-through-cnf-managed-fee-flows/7050/3 "2025-08-14T15:13:57Z")
Love to read this / see these updates, Bhaji! This is a great first step toward additional token utility. While we are not quite there yet and this is a necessary stop-gap measure, I’d imagine that in due course the necessary upgrades to V3 will automate this process and fees will be paid in CFG, thereby driving buy pressure on the token for those who do not hold any. Having said that, however, I am curious about the answers for the questions asked by TAG (via @0xjulcaesar) above. I will be sure to keep up with the ongoing dialogue and hopefully ask a few more questions at our next governance call. Thanks in advance for not only this but all that you and the rest of the team have been doing to promote Centrifuge since taking over as CEO! 🙌 Gratefully, Phunky / Ryan ---
**Author:** ![itsbhaji](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.centrifuge.io/itsbhaji/32/2270_2.png) [@itsbhaji](https://gov.centrifuge.io/u/itsbhaji)\ **Post date:** [August 14, 2025, 11:43pm UTC](https://gov.centrifuge.io/t/cp162-enable-protocol-revenue-through-cnf-managed-fee-flows/7050/4 "2025-08-14T23:43:50Z")
Hello! All great questions. Answered below. > [@0xjulcaesar](#): > > - **Fee Structure** – Will previous fee structure remain or will there be a new structure? > > The current fee structure is 50 bps across the board. For Anemoy specifically we’ve seen that fees need to vary product by product. For instance, JTRSY is lower than JAAA because there’s much more competition. With the development of onchain fees as part of V3, it might make sense to determine a new fee structure (with similar nuance as what we previously had with CP83). That will be a discussion and decision up to the DAO. > > - **Revenue Forecast** – What will be the expected revenue? > > Top line revenue for JAAA is 40 bps and JTRSY is 25 bps. Fees on future products will vary. > > - **Break-even Point** – When the arrangement is expected to break even or become profitable. > > If we hit our revenue goals and maintain conservative spending, we’ll break even in Q1 2027. > > - **Blockers** – Current blockers preventing onchain protocol fee functionality in V3. > > Product prioritization with other highly urgent deliverables. > > - **Roadmap** – Timeline and milestones for enabling protocol fees onchain. > > Currently planned for Q4 2025. > > - **CFG Token Utility** – Expected impact on token utility and value accrual. > > Huge! Now that TVL on JTRSY has reached $400M and JAAA is on track to surpass $1B, it makes strategic sense to turn on the fee switch. As the treasury grows, we can evaluate value accrual mechanisms such as buybacks, staking rewards, and others. These decisions should be discussed and determined collectively through the DAO. > > - **Data Access** – How TAG can get ongoing access to fee and revenue data for accurate treasury reporting. > > For now, working directly with me to provide the relevant data at the cadence you need. > > - **Reporting Frequency** – How often CNF will report to the DAO on fees collected, distributed, and retained. > > Quarterly. ---
**Author:** ![itsbhaji](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.centrifuge.io/itsbhaji/32/2270_2.png) [@itsbhaji](https://gov.centrifuge.io/u/itsbhaji)\ **Post date:** [August 14, 2025, 11:44pm UTC](https://gov.centrifuge.io/t/cp162-enable-protocol-revenue-through-cnf-managed-fee-flows/7050/5 "2025-08-14T23:44:22Z")
Thanks @The_Phunky_One for your continued support! Great to have you in the Centrifuge fam. ---
**Author:** ![3MCap](https://avatars.discourse-cdn.com/v4/letter/3/7ea924/32.png) [@3MCap](https://gov.centrifuge.io/u/3MCap)\ **Post date:** [August 16, 2025, 7:12am UTC](https://gov.centrifuge.io/t/cp162-enable-protocol-revenue-through-cnf-managed-fee-flows/7050/6 "2025-08-16T07:12:50Z")
- With the fee switch turned on, will holders accrue value from staking their $CFG tokens? - With this new implementation, what would the expected revenue be on an annualized basis? ---
**Author:** ![brave\_rabbit\_07255](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.centrifuge.io/brave_rabbit_07255/32/3400_2.png) [@brave\_rabbit\_07255](https://gov.centrifuge.io/u/brave_rabbit_07255)\ **Post date:** [August 19, 2025, 11:22am UTC](https://gov.centrifuge.io/t/cp162-enable-protocol-revenue-through-cnf-managed-fee-flows/7050/7 "2025-08-19T11:22:02Z")
@itsbhaji I still believe that tying protocol revenue to $CFG staking is the most effective and fastest way to align stakeholders. I outlined one approach in my reply to TAG’s “CFG Renaissance: Token Utility Research Report 2025” and would welcome your response and further discussion. ---
**Author:** ![itsbhaji](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.centrifuge.io/itsbhaji/32/2270_2.png) [@itsbhaji](https://gov.centrifuge.io/u/itsbhaji)\ **Post date:** [August 22, 2025, 12:17am UTC](https://gov.centrifuge.io/t/cp162-enable-protocol-revenue-through-cnf-managed-fee-flows/7050/8 "2025-08-22T00:17:57Z")
Based on current TVL projections, we expect topline revenue across all products to be $15M ARR. $CFG staking is a great way to align stakeholders. I’ll continue the conversation in the “CFG Renaissance: Token Utility Research Report 2025” post with @brave_rabbit_07255 ---
**Author:** ![ImdioR](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.centrifuge.io/imdior/32/1011_2.png) [@ImdioR](https://gov.centrifuge.io/u/ImdioR)\ **Post date:** [September 4, 2025, 6:27pm UTC](https://gov.centrifuge.io/t/cp162-enable-protocol-revenue-through-cnf-managed-fee-flows/7050/9 "2025-09-04T18:27:17Z")
Good day there! Since the CFG V3 is live and we are in the migration phase i talked with @WilliamFreude about the onchain vote. With the migration process of the pools, there is no need to do any on-chain voting on the Centrifuge Legacy chain for the chain. Which means that the proposal requires only off-chain snapshot voting and approval from CFG token holders. @itsbhaji, with this information that I just posted above, and with the more than 14 days of discussion, are you OK to move forward with the off-chain voting? If yes, I’m more than happy to help and assist you with this. Please let me know. ---
**Author:** ![ImdioR](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.centrifuge.io/imdior/32/1011_2.png) [@ImdioR](https://gov.centrifuge.io/u/ImdioR)\ **Post date:** [September 11, 2025, 2:40pm UTC](https://gov.centrifuge.io/t/cp162-enable-protocol-revenue-through-cnf-managed-fee-flows/7050/10 "2025-09-11T14:40:32Z")
Good day there! The proposal was submitted to GitHub as CP162, and the proposal is now live on Opensquare! - [CP162: Enable Protocol Revenue Through CNF-Managed Fee Flows](https://voting.opensquare.io/p/1823) All token holders can vote on it. The proposal will be open for 7 days. Please cast your vote! ---
**Author:** ![ymarnier](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.centrifuge.io/ymarnier/32/3392_2.png) [@ymarnier](https://gov.centrifuge.io/u/ymarnier)\ **Post date:** [September 11, 2025, 9:01pm UTC](https://gov.centrifuge.io/t/cp162-enable-protocol-revenue-through-cnf-managed-fee-flows/7050/11 "2025-09-11T21:01:48Z")
Capturing protocol revenue is essential for sustainability. I support the CNF interim role if reporting is transparent and on-chain fee collection remains the priority. ---
**Author:** ![ImdioR](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.centrifuge.io/imdior/32/1011_2.png) [@ImdioR](https://gov.centrifuge.io/u/ImdioR)\ **Post date:** [September 30, 2025, 9:01am UTC](https://gov.centrifuge.io/t/cp162-enable-protocol-revenue-through-cnf-managed-fee-flows/7050/12 "2025-09-30T09:01:00Z")
Good day, The proposal did not reach the required quorum of 4 million CFG and has therefore been rejected. The author may resubmit the proposal for consideration. ![image](https://europe1.discourse-cdn.com/flex013/uploads/centrifuge1/original/2X/9/9134619c31b51002591d1632ca6d82b0570fbabb.png) ---
**Author:** ![jagx7](https://avatars.discourse-cdn.com/v4/letter/j/0ea827/32.png) [@jagx7](https://gov.centrifuge.io/u/jagx7)\ **Post date:** [January 17, 2026, 1:31am UTC](https://gov.centrifuge.io/t/cp162-enable-protocol-revenue-through-cnf-managed-fee-flows/7050/13 "2026-01-17T01:31:31Z")
when will centrifuge move to charge fees and create an economic model not dependent on inflating token supply? 2026 is a turning point for utility and real economic value add: something like burn coins if the cash flow yield is greater than 8% and offer yield if less than 8%. ---
**Author:** ![ImdioR](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.centrifuge.io/imdior/32/1011_2.png) [@ImdioR](https://gov.centrifuge.io/u/ImdioR)\ **Post date:** [January 17, 2026, 8:48am UTC](https://gov.centrifuge.io/t/cp162-enable-protocol-revenue-through-cnf-managed-fee-flows/7050/14 "2026-01-17T08:48:08Z")
Good day Jagx7 Thank you for your question. As for the firs part of your question, Centrifuge is already charging fees. Bhaji Illuminati, Centrifuge CEO, will host an Investor Quarterly Call where she will share information regarding: - Actual revenue - Projected revenue for 2026 - Current state of development and future plans - Additional relevant updates The call will, of course be public and once it is announced, it will be shared across all official channels. Stay tuned.