Hashflow Turns On ‘Fee Switch’, Redistributing 50% Of Revenue To Stakers
Hashflow introduces trading fees alongside revenue-sharing model with HFT stakers taking 50%
By: Samuel Haig •DeFi News
Hashflow, a multi-chain DEX providing price quotes from market makers, has launched a revenue-sharing mechanism for tokenholders and trading fees on its platform.
From Nov. 1, the Hashflow exchange will charge trading fees to users. Half of the fees will be redistributed to users staking its native HFT token, while 30% will go to its community treasury to fund HFT buy-backs. The Hashflow Foundation will take the remaining 20% to cover operating expenses.
“Hashflow will be turning on trading fees starting today, after the approval of the proposal via DAO governance,” said Varun Kumar, Hashflow CEO and co-founder. “By distributing fee proceeds amongst token stakers as well as the Foundation, this proposal creates a sustainable model that will benefit all stakeholders in the Hashflow ecosystem.”
The launch of Hashflow’s revenue-sharing mechanism comes after Uniswap Labs contentiously began collecting a 0.15% fee on USDC, WETH, USDT, and DAI trades executed through its front end interface for the Uniswap protocol.
The new fee was activated on Oct. 16, and realized $84,000 in revenue for the company 24 hours after going live.
However, Uniswap Labs’ newfound revenue comes to the chagrin of UNI holders, who have long barracked for the activation of a fee switch redistributing revenue to their wallets.
UNI slumped 8.5% from $4.20 after the fee was turned on, with token last changing hands for $4.07 after a broader recovery in the crypto markets.
But Uniswap Labs’ reluctance to share its revenue is unlikely to be entirely motivated by greed. The company operates in the United States and must navigate the aggressive campaign of regulation-by-enforcement recently waged by the U.S. Securities and Exchange Commission.
Hashflow’s development team is based in the United States, according to Crunchbase.
Hashflow said its fees will be variable and will change based on what pairing a user trades. The fees are dynamic, adjusting with the goal to “charge the maximum fee possible without making the quote uncompetitive,” according to a recent governance proposal.
The proposal outlining the revenue redistribution mechanism passed with unanimous support after three days of voting on Oct. 21.