MIP - 2
PROPOSAL OUTLINE Facilitate seamless trading and liquidity provision for the MOZ token by REMOVING the token tax (0%) and instead use Camelot’s Dynamic directional fees to implement a 1.5% swap fee to continue to build POL for the MOZ - ETH trading pair.
Reimburse MOZ - ETH LPers who were affected by the Token Tax.
SPECIFICATIONS Upon implementation of the Token Tax, it was noted that liquidity provision for the MOZ - ETH trading pair incurred the same 2.5% tax on both adding and removing liquidity.
This proposal has two components: 1 - Remove the token tax by setting it to 0% and add Dynamic Directional Fees on Camelot for the MOZ - ETH pair (1.5%) 2 - Reimburse MOZ - ETH LPers who were affected by the Tax.
Camelot’s Dynamic Directional Fees (https://docs.camelot.exchange/protocol/amm/amm-v2/dynamic-directional-fees) will be automatically routed back to the MOZ - ETH pair (in equal MOZ AND ETH) to continue to build POL. These fees may be redirected by the MozaicDAO in the future. These fees do not affect LPers adding and removing liquidity.
The token tax also may be re-implemented in the future by the MozaicDAO only if it is deemed necessary.
JUSTIFICATION The MozaicDAO and protocol must not disincentivise liquidity providers for the MOZ - ETH pair.
Lowering fees for buys and sells will also encourage more volume for the MOZ - ETH pair.
The token tax was only ever meant to be a short-term solution to bolstering protocol owned liquidity, which can still be achieved through Camelot’s V2 AMM fees.
The core contributors also have the transaction hashes of every wallet that has been affected by adding or withdrawing liquidity to the MOZ-ETH pair on Camelot. All MOZ will be reimbursed to users adding/withdrawing liquidity - up until this MIP has been approved and executed.
OVERALL COST If MIP - 2 is approved, The DAO Treasury will no longer directly accumulate MOZ from the token tax. However, the Treasury will begin to accumulate MOZ and ETH respectively from the proposed swap fee as it is routed back to the trading pool.
Beyond this, the cost to the protocol is nil. MOZ will be reimbursed to MOZ-ETH LPers from the DAO Treasury from already taxed transactions.
TIMEFRAME Discussion/Temperature check - 48 hours (closed) Draft proposal - 48 hours (closed) Snapshot Voting - 72 hours
Allowing 48 hours for temperature check for deeper consideration.
STEPS TO IMPLEMENT Upon approval the core contributors will: 1 - Set the token tax to 0% in conjunction with setting the Camelot AMM fees to 1.5% 2 - Reimburse MOZ - ETH LPers from the Token Tax including MOZ and ETH (from withdrawal).
CONSIDERATIONS Voting: 1 xMOZ = 1 vote.
This will still be the voting mechanism used. QUADRATIC VOTING method has also been considered and may be implemented in the near future, based on DAO sentiment and voting outcomes etc.
Quorum threshold (2,000,000 xMOZ) - maintained.