RRC-XX: Set Rarible ExchangeV2 Protocol Fee

Proposals Parent DAO Proposals
#1

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

  1. Community feedback: Publish draft on the RARI DAO forum for input.

  2. On-chain submission: Deploy executable proposal on Tally to update fee parameters.

  3. Voting: Delegates vote (~5 days standard window).

  4. Cooldown: Standard veto period (~2 days).

  5. 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.

8 Likes
RRC-XX: Treasury Management Empowerment Program
#2

I do not have any objections against this proposal, just a couple of questions.

Will this replace the current fee structure mentioned in: Announcing Regressive Fees on Rarible.com

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?

2 Likes
#3

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?

2 Likes
Coffee-crusher Delegate Thread
#4

Hi @forexus, thank you for your questions. Here are the answers:

  1. The program " lock at least 100 RARI on old.rari.foundation and enjoy 0% buyer/seller fees" will remain.

  2. Will this replace the current fee structure mentioned in: Announcing Regressive Fees on Rarible.com
    yes

4 Likes
#5

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.

I will be voting FOR.

1 Like
#6

Thanks for the proposal, apprecaite the initiative.
I’d echo @forexus and @coffee-crusher’s questions, the proposal rather vague at the moment.

If the fees will be redistributed to users, how is this generating revenue for the DAO? And to which treasury, I guess the one on RARI chain?

2 Likes
#7

Hi @coffee-crusher

Thank you for your comments. Please see below the answers:

  1. 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?

Answer: There will be no revenue projections 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. The system consists of an Exchange contract, a Reward (ClaimerReward) contract, a Backend service, a Swap service, and the User. A Swap service converts fees to RARI tokens. Users claim rewards on-chain via the Reward contract using a backend signature.

  1. Also, what actions earn points, and how will the team prevent potential gaming of the system (e.g., sybil attacks or wash trading)?

Answer: Points are earned based solely on actual fees paid, they’re generated proportionally to the total protocol fees accumulated from user activity, this design makes the system inherently resistant to abuse. Wash trading or sybil attacks don’t create an advantage because even fake or self-directed transactions still incur real fees, any attempt to game the system just results in paying more into the protocol, since no points are generated without paying fees, there’s no way to extract value without contributing real economic activity

  1. 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?

Answer: yes. Here is a comparison with other marketplaces:

Where the market is today (mid-2025):

OpenSea (OS2): 0.5% marketplace fee (seller), swap fees removed.

Blur: historically 0% marketplace fee (governance can enable up to 2.5%; proposals for 0.5% have circulated).

LooksRare (v2): 0.5% protocol fee.

Magic Eden: ~2% transaction fee (chain-dependent).

A flat 2% seller fee is higher than OpenSea/LooksRare (0.5%) and Blur (0%), but in line with Magic Eden (~2%). Competitiveness, therefore, hinges on the zero-fee buyer experience + rewards: if buyers face 0%, conversion goes up; and if a meaningful share of fees is recycled into RARI claims, the effective net fee for active participants can undercut headline rates. That’s the intent behind this structure.

  1. 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?

Answer: Yes. The thesis is that reducing buyer friction increases fill-rates and overall GMV, which in turn grows the rewards pie (and DAO impact) even with a single-sided fee. Recent fee cuts at major marketplaces have coincided with share gains, supporting the general direction.

4 Likes
Coffee-crusher Delegate Thread
#8

Hi @bitblondy Thank you for your comments.

  1. This proposal is focuses solely on upgrading Rarible Exchange V2 protocol fee.

  2. The fees will be collected in the designated wallet where they will be automatically swapped into Rari tokens and redistributed to community. The rewards are distributed in $RARI, which is the DAO’s governance token. That means more active traders become active participants in governance, making the DAO stronger and more engaged. It also aligns incentives — traders, creators, and the DAO all benefit when marketplace activity grows.

5 Likes
#9

Thanks @Anria for the proposal and for taking the time to address the questions raised.

Overall, I support this proposal. It aligns with the market trend while also strengthening user incentives and encouraging deeper DAO participation.

1 Like
#10

My apologies, I completely missed going over this proposal before.

I agree with the proposal, and after going over this thread, I feel more confident. However, I have 2 questions before I vote.

What is this wallet that is going to receive the fees? and why is it an EOA and not a Safe Wallet controlled by the DAO?

0xb6EC1d227D5486D344705663F700d90d947d7548
@Anria

1 Like
#11

Hi @Jaf
That kind of wallet was set to allow automatic fee swap into Rari token. It is just a technical requirement.

2 Likes