SGP-19: Route Swap Fees to Treasury & Reallocate 50% of Gauge Emissions
Author: Ulysse
Status: v1.0
Category: Governance Proposal (SGP)
Created: 2026-04-14
Summary
Two changes, one direction: strengthen the treasury and reduce inefficient token outflow.
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Route pool swap fees directly to the DAO treasury, converted into a split between ETH and USDC.
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Reallocate 50% of current gauge emissions to a Liquidity Wallet for future incentives and strategic programs. FDV stays unchanged: this is a routing change, not a supply change.
Context & Motivation
This proposal intentionally changes part of Spectra’s original ve(3,3) design.
In theory, routing fees and emissions through ve-style mechanics helps align capital toward the best pools and creates a stronger feedback loop between liquidity, governance, and rewards. But that mechanism only works well at sufficient scale.
Today, Spectra is not operating at that scale.
In the current environment, a meaningful share of fees and emissions is being distributed outward without creating enough durable value for the DAO in return. The overhead is high relative to what the protocol actually captures, limiting resources for growth, treasury building, and future incentive experiments.
This proposal reflects a more conservative approach to the current phase of the protocol: reduce token leakage, accumulate usable treasury assets, and preserve strategic flexibility while broader refactoring is underway.
This is not a rejection of ve(3,3) as a long-term design. It is a recognition that, at current scale, the mechanism is not working as efficiently as intended. If that changes in the future, governance can revisit and re-enable it through a later proposal.
This proposal is meant as a recovery measure: preserve resources now, refocus the protocol, and retain the ability to restore previous mechanics later through governance if conditions improve.
Specification
- Swap fee routing
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Pool swap fees currently distributed through the ve(3,3) path are redirected to the DAO wallet.
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On accrual, swap fees are swapped into ETH/USDC, targeting a 50/50 split.
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Purpose: build a stable, liquid, immediately usable treasury that can be deployed toward growth, protocol-owned liquidity, and other DAO operations.
- Emission reallocation
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50% of current gauge emissions are redirected to a Liquidity Wallet to be later used for growth opportunities, incentives, and strategic deployments.
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FDV is unchanged: no new supply, no schedule extension. The remaining 50% continues through existing gauge mechanics.
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Accumulated SPECTRA is held, not sold. Future uses may include protocol-owned liquidity, strategic deployments, partnerships, or a burn if the DAO chooses that direction in a later proposal.
Rationale
Build treasury. The DAO accumulates liquid assets it can use.
Reduce token outflow. Redirect 50% of gauge emissions to a Liquidity Wallet rather than distributing them immediately.
No FDV change. This is a routing change, not a supply change.
Preserve flexibility. Accumulated SPECTRA can later be deployed through governance for liquidity, incentives, partnerships, or other strategic uses.
Match current reality. At Spectra’s current scale, treasury formation and resource preservation are more valuable than maintaining the current distribution model unchanged.
Vote Specification
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For: Route pool swap fees to the DAO treasury (converted into ETH/USDC) and reallocate 50% of current gauge emissions to the Liquidity Wallet.
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Against: Keep current swap fee and emission distribution unchanged.
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Abstain: No preference.
- For
- Abstain
- Against