Proposal: Activating ZFI Utility Through Fee Redistribution and Strategy Access Incentives

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Author: Gauthier

Date: 2025-06-13

Summary:

This proposal aims to activate real utility for both the ZFI token (Base & ZKsync) and its staked version, stZFI (only on ZKsync for now), within the ZyFi and ZyFAI ecosystems. Currently, no protocol fees are being distributed. This proposal seeks to correct that by implementing fee flows and other mechanisms that align with the value these tokens are intended to reflect.

Motivation:

ZFI and stZFI holders currently do not benefit from any value accrual mechanisms, despite the usage and adoption of the underlying products. The absence of live fee routing prevents long-term alignment between token holders and protocol growth. This proposal introduces initial mechanisms to ensure that activity on both ZyFi and ZyFAI contributes to token utility and value.

The first mechanism introduces a 10% performance fee on all ZyFAI strategies. 100% of these fees will initially be routed to the DAO’s cross-chain multisig wallet that will be create specifically for this.

While the system will begin collecting value from day one, the redistribution of 50% of these fees to stZFI stakers as native yield is planned for a later phase. This future distribution model will be implemented through a separate DAO vote, ensuring alignment with governance decisions and allowing for proper infrastructure setup.

The second mechanism introduces gated access to the upcoming Degen strategy on Base. The current Degen strategy on Sonic has proven popular, with nearly 80% of people who deployed a ZyFAI agent selecting it. The new version will only be accessible to users holding at least 20,000 ZFI. Users who do not meet the threshold or who sell after strategy deployment will be automatically rebalanced into the Safe strategy.

Mechanism:

Two implementations are proposed:

  • Performance Fee Redistribution:

    A 10% performance fee will be introduced across all strategies. 100% of this amount will be sent to the DAO. A simple cross-chain multisig smart account, managed by the DAO, will receive all these fees.

    The ZyFAI team will technically implement this fee based on the performance of deployed agents and the yield they generate. These fees will be forwarded to the DAO, which will then decide how to allocate them. Up to 50% of these fees may be distributed to stZFI holders (stakers) as native yield in a future phase.

  • Limited Access to “Degen” strategy:

    This strategy will be gated to VIP stakers. While all strategies are currently open access, a threshold will be added to access the Degen Strategy on Base network. This threshold will be set at 20’000 ZFI.

References:

No specific references to mention for this proposal except the ZyFi and ZyFAI docs.

8 Likes
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Would it be feasible to introduce a mechanism for the regular buyback of $ZFI tokens by the DAO, funded by performance fees generated on ZyFAI ?

The goal would be to:

  • Support the token price
  • Create organic demand
  • Indirectly reward holders
  • Strengthen the ecosystem’s economic sustainability

Proposed mechanism

Allocate X% of ZyFAI performance fees (example : 20–30%) to buyback $ZFI tokens.

I’m not aware of the exact fees currently generated by ZyFAI, so this percentage can be adjusted accordingly.

2 Likes
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Concerning VIP advantages on Base

  1. offer advantages to “VIPs”
    they bring liquidity it is coherent to offer them advantages
    to reward them and attract others.

  2. My comment on reserving the Degen option on Base for VIPs only.

If I’ve understood correctly, how does ZYFAI stand out from what’s being done on the
market? Allowing anyone to benefit from the advantageous returns offered by DEFI without the constraints (time, technical knowledge of ecosystems …)
enable them to generate higher returns than on CEX.

apy sur l’ucdt sur bitget 8.4% /usdc sur binance 10.86
Plan safe ) 9% / Degen 10-14% ( excl. bonus merkl)
The only way to get “small” CEX retails is to use the degen plan.

My complementary proposal, so as not to exclude anyone:
Leave the degen open to all and make 2 yield classes
Example:

  • 10%- 12.5% or 13% base (to seriously stand out from cex and attract everyone)
  • 10-14% for vip + a higher points reward rate and more advantageous stacking benefits too
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The limited access to the DEGEN version maybe makes more sense to make it dependent on the capital you want to deploy. The more capital you want to deploy the more value en ZFI you have to hold. Maybe a certain percentage of value of ZFI Token at the moment you deploy your capital? And have them staked to secure the network. Or maybe even better you make the yield dependent on the amount of zfi token staked depending on the value of your capital deployed. I would not make it fix. Maybe a minimum fixed and then similar to what I described above.

What I also would suggest is a buyback mecanism to keep demand of ZFI high.