Curve Finance, a DEX platform, is poised to distribute $2,631,601 in fees to its governance token holders as a result of a community election. Following a community vote, Curve Finance, a decentralized exchange, will transfer roughly $3 million in collected fees to the platform’s governance token holders.
Curve announced that it would decentralize its platform in May 2020. The governance token, CRV, was used. Users would receive tokens based on how much liquidity they have given to the system from its inception in January 2020.
The dissemination announcement, made on November 27, represents a major step forward in DeFi’s development. It demonstrates the effectiveness of a decentralized governance system on a decentralized liquidity farming platform.
Curve’s road to distributed governance
Curve’s first governance vote did not go as smoothly as intended, according to BeInCrypto on August 24. Voters panned the voting process. Michael Egorov, the company’s founder, wielded as much as 70% of the total voting power. Due to its Automated Market Maker (AMM) technology, Curve remains prominent in the yield farming market.
Curve began as a decentralized exchange dedicated to stablecoins and yield farming. In August, a community user correctly implemented the CRV token protocol, making it a highly sought-after DeFi token. The platform later accepted the protocol due to popular demand.
BeInCrypto reported on August 24 that Curve’s first governance vote did not go as expected. Voters chastised the voting procedure. Michael Egorov, the founder, wielded as much as 70% of overall vote power. On the other hand, Curve’s Automated Market Maker (AMM) technology has remained popular in the yield farming market.
Curve First Supported Stablecoins and Yield Farming
Curve was created as a decentralized exchange that first supported stablecoins and yield farming. In August, a community user successfully deployed the CRV token protocol, making it a highly sought-after DeFi token. The platform eventually adopted the protocol due to popular demand.
To vote, users must stake CRV tokens in the protocol’s voting contract, which subsequently distributes veCRV to users, thereby creating a voting escrow. Since September, veCRV holders have received half of the protocol’s 0.04 percent trading fee, with the remaining half going to liquidity providers.
According to Egorov, the current vote activates the code to trustlessly distribute the fees to veCRV token holders now and in the future. The fees gathered over 69 days, waiting for distribution, seemed to be $3 million while we were writing and testing the system.
Curve is the sixth-largest DeFi protocol, with $1.3 billion in cryptocurrencies held in its many smart contracts. According to DeFi Pulse, token trading has remained stable since the governance vote.
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