Author: Anna Riabokon (Rari Foundation), Rarible Team
Reviewer: Stable Lab
1. Abstract
This proposal updates the Rarible ExchangeV2 protocol fee parameters: set the seller fee at 200 bps (2%), the buyer fee at 0 bps, and route all fees to a dedicated recipient wallet. Collected fees will be swapped into RARI and distributed back to users through RARI claims on rarible.com based on the points they’ve collected. This mechanism strengthens the DAO’s financial sustainability while directly aligning user incentives with DAO growth.
2. Motivation
- DAO sustainability: Creates a consistent revenue stream to support long-term DAO financial stability.
- User experience: Aligns fee structure with other supported networks, ensuring consistent pricing across chains.
- Operational efficiency: Simplifies reward accounting and reduces costs for integrations.
- Lower gas costs: Fewer order parameters and payout steps reduce mainnet execution overhead.
- Strengthened Tokenomics & Treasury Impact: Fee redistribution into RARI strengthens tokenomics by creating a self-reinforcing cycle: more activity → more fees → more rewards → increased engagement. While the system redistributes RARI to users, it indirectly supports the DAO by deepening ecosystem token demand and governance participation (AInvest).
3. Rationale
- The Rarible Protocol supports flexible fee structures, allowing separate control over seller and buyer protocol fees.
- The 200 bps seller / 0 bps buyer setup is a simple, widely accepted model, making it easy to implement without requiring structural changes.
4. Specifications
- Protocol fee (seller): 200 bps (i.e., 2%)
- Protocol fee (buyer): 0 bps
- Fee recipient: 0xb6EC1d227D5486D344705663F700d90d947d7548
- Execution mechanism: via Tally’s executable code feature to upgrade contracts on-chain (similar to prior fee proposals) tally.xyz+2tally.xyz+2RARI Foundation+2tally.xyz+2.
- Distribution: Collected ETH fees are swapped into RARI and made claimable by users.
5. Steps to Implement
- Community feedback: Publish draft on the RARI DAO forum for input.
- On-chain submission: Deploy executable proposal on Tally to update fee parameters.
- Voting: Delegates vote (~5 days standard window).
- Cooldown: Standard veto period (~2 days).
- Execution: If approved, Tally executes the contract upgrade and routes fees to the designated recipient.
6. Summary
This proposal sets the Rarible ExchangeV2 fee structure at a 2% seller fee and a 0% buyer fee, with all fees swapped into RARI and redistributed through the rewards program. The change strengthens DAO sustainability, improves user experience, reduces gas and operational costs, and reinforces RARI tokenomics by creating a cycle of activity, rewards, and governance participation.
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