RRC-XX: Set Rarible ExchangeV2 Protocol Fee
Author: Anna Riabokon (Rari Foundation), Rarible Team
Reviewer: Stable Labs
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.
3. Rationale
Rarible Protocol allows separate configuration of seller and buyer protocol fees, offering flexibility.
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
Seller fee: 200 bps (2%)
Buyer fee: 0 bps
Implementation mechanism: Update fee parameters through Tally’s executable proposal process, as used in prior fee-related governance actions.
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. Estimated Timeline
Phase
Duration
Forum discussion & refinement
7–10 days
On-chain voting
~5 days
Cooldown/veto window
~2 days
Execution
Immediately after cooldown
7. Summary
This proposal sets the Rarible ExchangeV2 protocol fee as follows:
Seller: 200 bps (2%)
Buyer: 0 bps
Why: Strengthen DAO finances, align incentives, and simplify operations.
How: Execute via Tally governance flow with standard community input, voting, and on-chain upgrade process.
And what happens to the “lock at least 100 RARI on old.rari.foundation and enjoy 0% buyer / seller fees” feature? Will that still overwrite the new fee structure for as long as it is still there?
Thank you, @Anria for this proposal. I do have some questions to help me understand the details on this proposal, and I added some suggestions to consider to make this proposal stronger.
Regarding the financials, what are the estimated revenue projections from this fee structure, and how will the RARI-to-ETH swap mechanism be executed, and what measures are in place to minimize slippage and trading fees?
Also, what actions earn points, and how will the team prevent potential gaming of the system (e.g., sybil attacks or wash trading)?
And finally, the 2% seller fee is a significant change, in the opinion of Rariable and the Foundation, will this fee make us more or less competitive? Is this comparative to other marketplaces?
And a couple of suggestions to consider inclusion to address in this proposal:
The proposal could include a section with projected revenue figures based on past transaction data. This would show the real value of the change.
The current points section is too vague. The proposal needs a dedicated section that clearly explains the reward mechanism. For example, specify if points are tied to trading volume, number of transactions, or a combination of factors.
The rationale could be improved by elaborating on the rationale by explaining the strategic choice. For example, is the goal to attract buyers by offering a zero-fee experience, and do you believe this will ultimately increase overall transaction volume and benefit the DAO despite a single-sided fee?
Thanks for the proposal @Anria, I am behind reducing overall exchange fees, especially setting buyer fees at 0bps. I had similar questions to @forexus, but happy to see them answered.