SEP-5: Fee Collection - Sales

Author	masonicgit
Status	Proposed
Type	Software
Network	Cross-Chain
Implementor	TBD
Release	TBD
Created	2024-07-21

Simple Summary

A protocol fee collection will help to generate transaction fees that give back to the DAO. This can open the door to substantiating the economic value of the DAO so it can be measured in comparable ways to Layer 1 blockchains and Layer 2 app-chains. This SEP concerns only the sales that occur using the contracts. A customer may fundraise a given quantity in various coins such as Ethereum and USDC, this SEP outlines a manner in which a portion of the funds can be routed into the DAO smart contract to provide economic value to the protocol in exchange for use of the software. Just like Bitcoin!

Abstract

This SEP proposes a DAO-controlled configuration which sets the number of payment or native tokens to pull into the DAO per-purchase. The Flat Price Sale contract will reference the DAO-controlled configuration at purchase-time to determine the percentage of purchase amount that is sent to the configured recipient, in this case the DAO Governor.

The percentage is determined by the configuration, initialized to 1% (100 bps).

Motivation

Every piece of software should contain an economic incentive layer in order to foster the development and growth of the software. This SEP outlines one of many ways that this can occur.

Specification

Overview

As Soft Protocol continues to support new launches onchain, it’s critical to incorporate an economic incentive layer. This can ensure sustained protocol operations & longevity of the Soft treasury. By implementing the changes outlined below, Soft can capture fees and continue to thrive. New contracts will be deployed, with corresponding interface changes to reflect the new feature.

Rationale

In order to make fee collection robust and transparent, it's necessary to implement at the contract layer, rather than the application layer. Integrating fee collection at the application layer would allow savvy users to bypass fee collection by merely writing directly to a sale contract.

Technical Specification

This proposal includes a new contract, called a NetworkConfig (also referred to as the "network configuration") which will be a Governor-owned configuration contract, which can later be changed through the use of a SOFT Configuration Change Proposal. Our first iteration of the NetworkConfig will include the official address of our SOFT Staking Contract, as well as the official address of our DAO Governor Contract (referred to as the "fee recipient"), which is where the fees are sent. Additionally, the NetworkConfig will include the global fee amount, stored as a quantity of "bips" (basis points) that reflect a percentage of the purchase volume for purchases from FlatPriceSale contracts.

This proposal will require us to author a new version of our FlatPriceSale contract, which will include the network configuration. With this proposal, during a purchase from a FlatPriceSale, the contract will charge a fee set by the configured global fee amount. Using the fee amount, the contract will know the percentage of the purchase amount that will become a fee payment. The contract will finally send this amount of the purchase to the configured fee recipient before sending the remaining purchase amount to the sale itself.