I writing this upon the suggestion of rxpwnz on discord. This is intended to start a meaningful discussion and increase awareness.
Some things I think are wrong with not having a fee
1- We are paying users with cheap tokens and dumping the price, it may not be the best solution.
2- if users are not gonna use without the fees what makes us think they will in the future?
3- uniswap can’t still switch on the fees after all these years. Why pick the same route when there are many solutions with fees turned on.
4- I’m up for starting with anything, even a low %fee. I want to earn like looksrare or any other staking proposal, esgmx is ok for me too, right now I’m selling my hop, because I feel that’s the only sensible thing to do.
5- People are already paying many fees, why would they stop using it because another fee popped up?
6- (Extra) Imagine Binance never getting TX fees. They implemented from the start and like many exchanges didn’t apply them in certain circumstances.
Here is a bit extra of what could a hop token vault could provide
1- Fees for the stakers if we ever implement them.
2- If there are fees for the protocol users can stake some token to reduce the fees in using the protocol.
3- Not that I have seen any but if we think a project is good we can maybe start a partnership with them and lock their tokens to provide stakers with benefits. For instance hop can buy GMX tokens and lock them to provide Hop stakers with reduced fees on GMX trading. (This wouldn’t work right now as there isn’t a way to do this on GMX) Both sides would need to implement things here.
4- Diversifying treasury with fees and tokens. Stakers can choose to do what they want. Staking can be with lockups or no lockups.
5- More of the protocol rewards going to stakers.
I’d stake in these circumstances even though locking up would prevent me from selling in times of need. There would be many levers that can provide to control many aspects of the staking activity. I don’t suggest implementing them all at once but we should start somewhere and I think most important aspect is first getting revenue. Do we have PMF, do we have people willing to pay for our products? After all it has been 2 years and I have been paying for jumping with Hop here and there.