teleo-codex/decisions/internet-finance/deans-list-update-liquidity-fee-structure.md

type	entity_type	name	domain	status	parent_entity	platform	proposer	proposal_url	proposal_date	resolution_date	category	summary	tracked_by	created
decision	decision_market	Dean's List: Update Liquidity Fee Structure	internet-finance	passed	deans-list	futardio	Dean's List team	https://v1.metadao.fi/deans-list/trade/B8WLuXqoBb3hRD9XBCNuSqxDqCXCixqRdKR4pVFGzNP	2025-01-14	2025-01-17	mechanism	Increase swap liquidity fee from 0.25% to 5% DLMM base fee, switch quote token from mSOL to SOL, creating tiered market structure	rio	2026-03-24

Dean's List: Update Liquidity Fee Structure

Summary

Dean's List DAO approved increasing their swap liquidity fee from 0.25% dynamic pool to 5% DLMM base fee (up to 10%), switching quote token from mSOL to SOL, and establishing a tiered market structure where the DAO pool captures revenue from large trades needing deep liquidity while individual LPs serve smaller trades at lower fees.

Market Data

• Outcome: Passed
• Proposal Account: B8WLuXqoBb3hRD9XBCNuSqxDqCXCixqRdKR4pVFGzNP
• Duration: 2025-01-14 to ~2025-01-17
• Current Monthly Volume: 46,228 USDC (06 Dec - 06 Jan)

Revenue Impact

• Current daily fee revenue (0.25%): ~3.85 USDC
• Projected daily fee revenue (5%): ~77 USDC (20x increase)
• Conservative annual treasury growth: ~19,416 USDC
• Optimistic annual treasury growth: ~24,960 USDC

Significance

Demonstrates futarchy-governed fee optimization for a small DAO token. The proposal creates a novel tiered market structure where the DAO captures revenue from large trades needing liquidity depth while smaller trades flow to individual LP pools at lower fees, effectively incentivizing broader market-making participation.

Relationship to KB

• deans-list — parent entity, fee structure governance
• futardio — governance platform

Full Proposal Text

Source: futard.io, tabled 2025-01-14

Summary

Increase DAO swap liquidity fee from 0.25% dynamic pool to 5% DLMM base fee (up to 10%) to generate sustainable treasury revenue.

Rationale

Current 0.25% fee insufficient to generate meaningful treasury revenue, support operational costs, or build reserves. Average daily volume ~1,541 USDC generates minimal inflow.

Implementation

• Create DLMM pool with 5% base fee, bin step of 80
• Change quote token from mSOL to SOL
• Fee reclaiming done monthly by DAO treasurer (@1xraccoon)

Tiered Market Structure

• Large trades: prefer DAO pool (high liquidity, 5% fee, less slippage)
• Small trades: individual LP pools (lower fees ~0.25%)
• DAO captures revenue from large trades; contributors incentivized to provide smaller pools

Growth Scenarios (with fee increase)

Scenario	Volume Change	Monthly Fee Revenue	Annual Growth
Conservative	-30%	1,618 USDC	19,416 USDC
Moderate	-20%	1,849 USDC	22,188 USDC
Optimistic	-10%	2,080 USDC	24,960 USDC

TWAP Calculation

Current MCAP (-5% adjustment): $298,889 Pass threshold: $307,855 (MCAP + 3%)