Curve passed a unanimous governance vote to distribute $3M worth of protocol fees to CRV holders staked into the CurveDAO over the weekend.
With just under 50% of all staked token holders voting on the proposal, the 100% majority vote signals strong alignment for the stablecoin AMM to distribute the 2.9M yCRV accrued to the Set converter over the past 62 days to veCRV holders.
veCRV is earned by locking CRV into the CurveDAO, giving LPs a boost on their CRV rewards relative to the duration they choose to lock their tokens. Those that lock their tokens for longer periods of time also earn higher governance weight and now, a higher portion of the protocol fees.
The first distribution is scheduled to happen next week, after triggering the ‘red button’ to disperse ~$3M worth of fees across veCRV holders pro-rata based on their time and total amount staked.
Curve is the first AMM after SushiSwap to distribute protocol fees directly to token holders. It’s not a coincidence that the two projects to do this are led by anonymous teams; fee distribution is similar to a dividend payout, which may raise regulatory concerns for US-based projects such as Uniswap.