Good day, Community!
Uses component: CP4
Author(s): Cassidy, Imdior
Contributor(s): Lucas, Jay
Technical/non-technical proposal: Technical
Date proposed: 2023-10-11
Changing the Transaction Fees on the Centrifuge Chain for specific transactions to move a portion of the fee into the treasury.
This proposal, if passed, will change the value for different Transaction Fees for Pools and Liquidity Pools on Centrifuge Chain.
Since the migration from the Stand-Alone chain, 129,157 transactions have been made on the Centrifuge Chain. The cost of the basic transaction on Centrifuge Chain is 1.1801 milli CFG (0,0011801 CFG).
We propose to modify the transaction fees for pool specific transactions in this proposal. We think that the transaction fees should be updated to be in-line with the service/value each transaction is providing.
This proposal introduces an additional component to the transaction fee that will be transferred to the treasury for each transaction in addition to the standard weight-based fee system that is part of any Substrate based chain.
This proposal adds the fees to be paid into the treasury for these transactions as follows:
|Mint (loans: create)||CFG 10|
|Finance (loans: borrow)||CFG 2,5|
|Repay Asset (loans: repay)||CFG 2|
|Close Asset (loans: close)||CFG 2|
|Modify Asset (loans: proposeLoanMutation)||CFG 10|
|Update pool info (poolRegistry: update)||CFG 33,5|
|Adjust pool reserve (poolSystem: setMaxReserve)||CFG 7|
|Close Epoch (poolSystem: closeEpoch)||CFG 33,5|
|NAV Update(per asset)||CFG 0.5|
|Price Data Update|
|Pool Deployment (poolRegistry: register)||CFG 1500|
|Liquidity Pool on new network (liquidityPools: addPool)||CFG 2500|
|Tranche on new network (liquidityPools: addTranche)||CFG 1000|
|Whitelist investors (permissions: add)||CFG 3,3|
|Invest (investments: update_invest_order)||CFG 1,67|
|Redeem (investments: update_redeem_order)||CFG 3,3|
For each action described above, such as deployment of a new pool, repayment of assets, closing epoch etc - the CFG token will be used to pay for each transaction on the Centrifuge chain. This will impact beneficially, in our opinion, the utility of the token.
A high-level proposal of how this could be implemented technically subject to PEG (Protocol Engineering Group) review and recommendation on runtime changes to effect these changes:
- Create a standardized way for transactions to add a fee to be sent to the treasury.
- These fees should be stored in chain state such that they can be changed without doing a runtime upgrade.
- There should be an extrinsic that can be called by governance (democracy proposal) to update the fee for any extrinsic.
- The fee recipient is always the treasury account.
- The fees are in addition to the weight-based fees that will still apply.
Introducing and additional component to the transaction fee which will be paid in CFG token will extend the token utility and will beneficially contribute to the economic sustainability, will ensure the ongoing development and maintenance of the protocol and will guarantee future development and innovation of the Protocol, as well as support other activities that are deemed to be in the best interest of the Protocol and token holders.
The RFC will be open for a minimum of 7 days.
Looking forward to any feedback and any concerns that you might have with this proposal.
If there is support for this proposal, the next steps will be to submit it to the Proposal Repository on GitHub and create an Opensquare snapshot vote.