The governance proposal for Origin Protocol to increase staking rewards for OGN staking is set to close on March 21st.
Origin Protocol, a builder of the non-fungible token (NFT) marketplaces, is weighing changes to its tokenomics to stay competitive in the ongoing zero-fee royalty wars without distancing its OGN token stakers.
A governance proposal, anticipated to pass on Tuesday, indicates that Origin Protocol might back its OGN staking program with Ether (ETH) and OGN subsidies.
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This step is intended to counter the short-term drop in fee revenue, which usually underpins Origin's well-liked yield program that currently holds 11% of all OGN tokens.
However, these fees are being suspended – at least until June.
In early March, Origin's on-chain governance voted for a three-month halt of the 1.25% fee on NFT sales via Origin Story, the protocol's brand-focused NFT marketplace service.
This puts Origin Story in head-to-head competition with OpenSea and Blur, the top NFT marketplaces currently engaged in a zero-fee conflict to attract digital collectibles traders. Origin described its fee cut as an attempt "to gain market share at this critical time."
The subsidies proposal recognizes that the fee suspension will cause a short-term reduction in platform revenues that would have otherwise been awarded to OGN stakers.
As of the time of writing, Origin's website dashboards showed that the rewards pools for both ETH and OGN were entirely exhausted, meaning no tokens were available for payout to OGN stakers. The governance proposal reads:
If this proposal passes, we invite the community and other team members to submit more specific proposals on ETH and/or OGN budget to allocate into the pool.
As voting comes to a close, the subsidies proposal appears on track to be approved. At the time of writing, 27 OGN token holders had voted with over 1 million tokens in support.
At least three of the participating addresses were connected to Origin Protocol employees, together representing over 50% of the voting power.