The bZx team has unveiled the details on the new economic model of its BZRX governance token, in a blog post published on June 28. 

Saying that the token had involved from its early vision as both a governance token and medium of exchange to strictly a governance token, the team describes two proposals that “align the incentives of stakers and users.”

The changes follow the announcement of bZxDAO, the model for governance which incentivizes participation through staking rewards. The more active a user is on the network, the more ownership of the network they possess. Conversely, a lack of participation results in a loss of ownership.

Specifically, the two changes relate to fees sharing and protocol disbursement. 

Concerning fees sharing, whenever an individual stakes BZRX towards a representative, they are given a portion of a new type fees that is commensurate to how much they have staked. This change has been implemented with Balancer pools in mind. Currently, there are two such pools envisioned: a stablecoin pool and a variable fee pool. Those who stake BZRX can claim Balancer Pool Tokens for their contribution.

Protocol disbursement, which is another way of describing liquidity mining, dictates how ownership is distributed towards stakers. 20% of the total supply of BZRX will be allocated for this purpose and is broken down as follows: 17% towards BZRX rebates and 3% towards the use of the protocol.

With rebates, every time a user pays a fee, 50% of it is refunded in the form of BZRX. As for protocol usage, 0.25% of the BZRX token supply will be distributed every week based on the quantity of fees generated. The team says that anyone who “executes a trade, opens a loan, or keeps a loan open, will begin to accrue ownership of the protocol.”

bZx is expected to launch v2 of its platform in the coming months. The changes described in the blog post show that it is taking similar approaches to other defi platforms launching yield farming programs, like Compound Finance (COMP) and Synthetix (SNX).