Hi @julio
That’s right. Of the two ideas put forward, burning is the one we view with more caution, as ParaSwap’s own experience has shown that it did not impact the price in the way it was proposed, so we advise to analyze very deeply before taking a measure like this as it is irreversible in the future.
Revisiting the idea of distributing to the stakers the fees 90%ETH / 10%PSP instead of 100% in ETH as today, and to throw another point of view to the debate we have given in our previous comment and thinking about possible positive effects, it could be argued that what the staker does after receiving 10% of the distribution in PSP is a matter of the staker and that it cannot be assured that most of them will liquidate their entire position to return to ETH, we are talking about PSP stakers, i.e. users committed to the protocol. This proposed form of distribution at a certain point could link the price of PSP to the performance of the protocol, since as the spread between protocol performance and circulant increases, the impact on the purchase of PSP for distribution could theoretically generate an impact on the price, which in parallel further incentivizes the stake of 10% of PSP to be distributed.
What do you think about that?
But again, these are appreciations that should be analyzed in more depth before taking measures that may cause an undesired impact among stakers and ultimately in the PSP market.
We agree with this and it is consistent with our previous comments. The issues being discussed here are very important decisions that will impact the protocol, its participants, and potentially the price of the token. Therefore, the decision must be thoroughly analyzed to ensure that it will have the desired effect and not the opposite. It would not be a bad idea to consult a financial and risk management specialist before making a decision, and if the DAO decides to go in this direction, it should be very strict and detailed in developing a framework with the tasks that will be required, the KPIs and the payment method associated with their fulfillment in the case of a service provider that delivers more than a one-time advisory work.