Token Utility

Fees/Revenue

SPOOL Tokens entitle stakers to 100% of protocol revenue as voted by the DAO. Currently, revenue is split into direct payouts in the form of SPOOL/DAI liquidity (80%) and deposits into the DAO Treasury (20%). Therefore, the foremost Token Utility is protocol revenue capture.

At the time of editing this documentation (8-4-2024), the Spool DAO has not enabled the fee-switch for sharing revenue with its' respective token holders. One of the risks of enabling the fee-switch, was that exchange listings on T1 exchanges would not be possible since the token would most likely be considered a security.

Incentives

The Spool DAO can incentivize participants (including itself) via the Spool DAO Treasury and fees.

voSPOOL

SPOOL Tokens are required in order to obtain voSPOOL, voSPOOL in turn allows the SPOOL Token Holder to participate in Spool Ecosystem Governance.

Risk Model Proposal

Risk Model Providers can stake SPOOL Tokens and propose their Risk Model to the DAO. The stake ensures that Risk Models are only proposed by actors who intend to participate in the Protocol in good faith.

Strategy Proposal

SPOOL Token Holders can propose new Strategies to the DAO. After their submitted proposal has been passed successfully these Strategies become available for utilization within the Spool Ecosystem.

Governance via Spool Improvement Proposals (SIPs)

SPOOL Token Holders can create their own SIPs, while voSPOOL Holders can vote on SIPs that will determine future protocol changes and upgrades. Due to the majority of SPOOL being distributed to protocol users (see Release Schedule), the community will eventually assume governance and direct the future of the project.