SGP 13 - Update of YT Fee Distribution

Governance Proposals (SGP)
1

Summary

This proposal aims to change the allocation of 3% YT fees by allocate 60% to veSPECTRA voters + 40% the DAO (instead of 100% tot he DAO previously).

Rationale

Following the approval of SGP6, the DAO collects the 3% YT fee. , refine the mechanics of YT fee distribution for catching even more value with the veSpectra token based on the protocol usage.

Proposal

We propose to update the YT fee distribution as follows:

  • 3% fee remains unchanged
  • Automatically swapped to ETH before distribution
  • 60% to veSPECTRA gauge voters (only those who vote on the corresponding asset’s gauge)
  • 40% to the Spectra DAO treasury

These YT‑fee revenues are added on top of existing vote‑based fee distributions, and are handled via the same voting + epoch process already in place.

Community Poll:

  • For
  • Against
0 voters

2025-08-14T22:00:00Z→2025-08-21T22:00:00Z

2

The biggest thing here, is that this would also entail an engineering lift

3

Another alternative could just be a $SPECTRA buyback with the 3% YT fees :

  • Gauge and swap fees remain unchanged → only focus on YT fees
  • 3% fee remains unchanged
  • Automatically swapped to ETH for buying back $SPECTRA
  • 100% used for buyback

I think it could be healthly for all SPECTRA holders + reduce inflation+ easier to manage comparing to gauge initial proposal.

4

I agree to give more revenue to the voters.
This incentive the investors to lock their $spectra AND engage them into the governance for a real DAO.

1 Like
5

hear me out,
increase YT fees to 5% (20% under pendle’s)
use it all, all 5% to buy ETH first.
now send 2% to DAO Fund.
use other 3% to incentivize BuyLocks of veSPECTRA

Buylocks are a process where people directly buy SPECTRA and add to a new or exisiting veSPECTRA position
A flat 10% - 20% static bonus per SPECTRA bought-locked.
Minimal dev effort it required to implement it, Elite can help for free as they have done many such programs successfully!

This has been super successful everywhere.
And this still lets us keep the DAO fund funded well.
And also ensures our YT fee are lower than our bigger frens.

As for the engineering lift that Finanzgoblin mentions, i think the existing DAO fund can pay for this, as this directly helps make spectra more attractive, which in turn brings more TVL, i.e., more $$$ for the DAO Fund!
Invest in yourself is the best trick in your bag!

^to clarify, there isnt much to do here tbh, just need to collect the $ and dist it.. this can be done quarterly, and doesnt need weekly tending

1 Like
6

The YT fees can be retrieve when pools expired and is done manually by pool by pool.

I know that this is a time consuming so it needs some process if we want automate it after pool expiry.

It’s great to have fund in the DAO but it’s useless if it’s work for nothing which is the case right now.

So yes a buyback of Spectra and maybe burn is great for reducing the epoch inflation. We can increase it to 5% and buyback 100% as pendle do.

Let’s go :heart_hands:

1 Like