Decentralized finance (DeFi) protocol Frax Finance is eyeing a significant shift in its protocol fee distribution, drawing inspiration from Uniswap's recent proposal, as per a recent report from CoinDesk. 

According to Sam Kazemian, CEO and founder of Frax Finance, the core team is considering a move to distribute a share of protocol fees to veFXS token stakers, mirroring Uniswap's approach.

Kazemian stated in an interview that the community's voice will play a pivotal role, as the proposal aims to reintroduce revenue sharing after a community vote in 2022 opted to suspend it.

"We are going to follow Uniswap's lead in proposing it. It will be up to the community to pass it," Kazemian said.

Frax Finance has also taken to social media platform X to gauge community sentiment, stating, "Should veFXS holders vote to distribute Frax Protocol revenue back to veFXS stakers again?" 

Frax Finance generates eight figures per year in revenue, which is mostly kept in treasury.

The ecosystem's governance and utility token, FXS, allows users to lock tokens and receive veFXS tokens, retaining both utility and governance rights. These veFXS tokens can be staked on the Ethereum mainnet and Frax Finance's layer 2, Fraxtal.

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Uniswap's Fee-Switch Proposal

Uniswap's recent proposal marked a departure from previous initiatives, seeking to align the fee mechanism with the interests of staked and delegated token holders. 

In its proposal, the Unswap Foundation seeks to improve protocol governance to facilitate the collection of protocol fees. These fees will be distributed proportionately to UNI token holders who staked and delegated their votes. This move garnered a positive response, boosting UNI token prices by 60% in just a few hours.

While Uniswap's proposal led to a 60% surge in UNI token prices, Frax Finance's native token ($FRAX) is currently trading at $0.9978, showing minimal change over the last 24 hours.