Proposal for Reown Fee Redirection and DAO Value Capture Integration
1. Abstract
Following the commercial fee models outlined in the November 2025 prospectus, Reown actively charges for SDK usage and Monthly Active Users (MUA). This proposal requests the formal integration and partial redirection of these existing revenue streams directly into the DAO ecosystem. The goal is to establish an on-chain value capture mechanism that aligns commercial success with token holders, infrastructure operators, and the long-term sustainability of the decentralized network.
2. Motivation & Context
WalletConnect’s infrastructure has successfully transitioned into a commercial monetization phase via Reown, leveraging SDK tiering and MUA metrics. However, for governance to be truly decentralized and meaningful, the economic utility generated by the software must be explicitly linked to the DAO.
Given that the monetization framework is already operational, we propose integrating these existing off-chain or centralized revenues into an on-chain smart contract system. This ensures:
True Governance Alignment: A governance system cannot rely on “paper-only” decisions; it must oversee and manage the economic reality of the protocol.
Treasury Autonomy: Transitioning a percentage of existing commercial revenues to the DAO Treasury reduces reliance on finite ecosystem grants.
Ecosystem Incentives: Ensuring that node operators and active network participants directly benefit from the ongoing commercial utilization of the SDK.
3. Specification & Proposed Value Routing
Instead of introducing new fees for dApps or users, this proposal focuses on routing a designated percentage of Reown’s current SDK and MUA revenue through the protocol’s native architecture:
Protocol Fee Split: A proposed 20% to 30% of the gross revenues generated by Reown’s current commercial SDK licensing and MUA metrics should be systematically converted or routed into the protocol’s native token ecosystem.
On-Chain Settlement: These funds should be directed via auditable smart contracts to distribute value back into the web3 ecosystem that sustains the network traffic.
4. Revenue Allocation Framework
The redirected funds from the existing commercial model will be allocated as follows:
60% - DAO Treasury: For funding core protocol upgrades, security parameters, and decentralized public goods.
30% - Infrastructure Node Incentives: To reward decentralized relay operators handling the traffic generated by the paid SDK tiers.
10% - Protocol Reserve: To ensure security alignment and liquidity depth within the ecosystem.
5. Implementation Roadmap
Phase 1 (Forum Discussion): 14 days to debate the appropriate technical implementation and transparency requirements for Reown’s revenue reporting to the DAO.
Phase 2 (Signaling Vote): A community snapshot vote to establish the principle of fee redirection from centralized commercial entities to the decentralized DAO.
Phase 3 (Technical Integration): Development of the on-chain routing mechanisms to trustlessly manage the allocated revenue percentages.
security parameters should be stronger than expected