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Add optional Taker Fee Burn mechanic for OSMO collection #8921

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JohnnyWyles opened this issue Dec 31, 2024 · 0 comments
Open

Add optional Taker Fee Burn mechanic for OSMO collection #8921

JohnnyWyles opened this issue Dec 31, 2024 · 0 comments

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@JohnnyWyles
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Background

From community conversations, I have seen a lot of demand for using taker fees as a more significant burn mechanism.
We already have a burn mechanic in ProtoRev;; this would be more impactful if staking payments from taker fees were considered too large.
While the community pool would be a "soft burn" since OSMO is still removed from circulation, there have also been concerns that it has far too much OSMO compared to what it could feasibly spend, and the amount "burned" is difficult to track compared to sending it to the null address.

Having this as an option would be useful and a slight code change at first glance.

Suggested Design

PoolManager Params

"osmo_taker_fee_distribution": { "staking_rewards": "1.000000000000000000", "community_pool": "0.000000000000000000" },

Add parameter, burn, initially set to 0, that sends a portion of this OSMO distribution to the Null Address
osmo1qqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqmcn030 at epoch rather than the distribution module addresses.

"osmo_taker_fee_distribution": { "staking_rewards": "1.000000000000000000", "community_pool": "0.000000000000000000", "burn": "0.000000000000000000" },

Acceptance Criteria

A portion of the Taker fee collected in OSMO is able to be sent to the null address at epoch.

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