OrcaDAO
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Revenue & Distribution
How does the DAO earn any revenue, and what happens with it?

Revenue Processes

There are three main modest channels of revenue that will support the DAO's financial health, its members, its charitable endeavors, and its future development. They will be:
0.75% Liquidity Pool Deposit Fee - when Liquidity Pool tokens are deposited into the Farm, this fee will be deducted from the LP token amount. (e.g. if $100 of AVAI-USDT LP token is deposited there will be a $0.75 fee deducted)
0.75% Repayment Fee - on the lending side, this is paid by the user when a vault owner closes their debt position to reclaim their collateral. There is a 0% Borrow fee, only this fee during repayment.
0.75% Stablecoin Swap Fee - when minting new AVAI with a stablecoin (e.g. USDT, USDC, DAI), or redeeming those stablecoin for AVAI being redeposited and burned.
These can be adjusted in the future if so determined by the DAO. There will be a 0% interest rate fee on loaned funds.

Revenue Distribution

With the funds captured above, the initial distribution of revenues is as follows:
For the onset, all funds are directly routed into the Treasury wallet. From there they will be distributed as follows:
Insurance Wallet: otherwise known and understood as the Treasury. This 40% will be held in a Multisig wallet and will only be used as insurance for users, for any possible (though highly unlikely) exploits. Once this wallet approaches the Total Value Locked (TVL), it can be adjusted.
ORCA Token Holders: 40% will be directed right back to ORCA token holders. The more transactions flowing through AVAI, the more valuable the ORCA token will be as more profit sharing will be passed down. This distribution will occur via contract on a weekly basis on Sunday at 00:00 GMT.
OrcaDAO SeaFund: 15% will be routed into the SeaFund wallet, intended to be directly distributed to the basket of championed organizations here.
Future & Ongoing Development Funds: 5% will be placed in a separate wallet to be used for items such as: ecosystem development, protocol improvements, infrastructure costs (e.g. The Graph), contract and protocol maintenance, UI enhancements, and other items deemed necessary and approved by the DAO.
Similar to revenue fees, the distribution of revenues can be voted on by the community and adjusted as necessary.

ORCA Staking

Staking ORCA is the method in which ORCA token holders will receive their share of protocol revenues. For specifics on how to Stake ORCA, please see the How To.
To begin, ORCA holders will be rewarded with AVAX revenues collected from the protocol. This is primarily to maintain a consistent supply of ORCA, and to provide users the flexibility to choose how they would like to spend their rewards within the Avalanche ecosystem. It also enables a feedback loop where users that receive ORCA as a farming reward, have the option of pairing that reward with AVAX staked rewards, rather than creating sell pressure by being rewarded with ORCA for both scenarios.