1. Summary
Update the fee schedule to 0.75% activation and 30% of generated interest at repayment (from 0.25% and 20%), applying only to new loans. Fee discount tier percentages remain unchanged, while required token holdings per tier increase by 50% to keep incentives balanced and, subject to legal and regulatory review, support sustainable funding and sLIQ (LIP-12) staking flows from daily loan fees.
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Activation fee: 0.25% → 0.75% (assessed on principal at loan creation).
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Repayment fee: 20% → 30% of generated interest (platform fee at loan repayment).
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Scope: Applies to new loans only after the effective date; existing active loans are unaffected.
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Intent: Establish a sustainable, market‑aligned revenue base to fund development, security, and—subject to legal and regulatory review—programmatic initiatives.
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Staking context (sLIQ): Under LIP‑12, 30% of daily loan fees are used to acquire LIQUIDIUM and are sent to the staking contract for sLIQ holders. Increasing gross fee revenue proportionally grows this stream under the same policy.
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Discounts: Existing LIQUIDIUM•TOKEN‑based discount/bonus tiers on the platform fee remain in effect; tier percentages remain unchanged, while required token holdings per tier increase by 50% (see §3.1).
2. Rationale
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Sustainability: Current fees have been intentionally low; increasing them modestly supports continued shipping velocity, audits, risk controls, and infrastructure reliability.
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Alignment with token holders: Where legally permissible, a portion of net revenues supports community‑aligned programs (e.g., staking rewards via sLIQ under LIP‑12), without making or implying any token price or return claims.
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sLIQ overview (for visibility): sLIQ is Liquidium’s reward‑bearing liquid staking token on Bitcoin Runes. Stake LIQUIDIUM → receive sLIQ; 30% of daily loan fees purchase LIQUIDIUM and are routed to the staking contract, causing the sLIQ↔LIQ exchange rate to rise over time. sLIQ carries the same governance weight and fee‑rebate status as LIQUIDIUM and is designed to be usable as collateral on Liquidium. See: sLIQ blog overview and LIP‑12 for details (links below).
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Market context: While not directly comparable across products, crypto platforms commonly charge low‑single‑digit fees; the new schedule remains competitive and transparent.
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Predictability: Borrowers pay a small, up‑front activation fee and lenders share a platform fee on interest only at repayment.
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Incentive balance: Tier percentages (5%/10%/15%/20%/25%) remain unchanged, while required token holdings per tier increase by 50% to keep discounts/bonuses proportionate to the higher fees and ensure long‑term sustainability (see §3.1).
3. Details
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Parameters: Activation 0.75% (principal at creation); Repayment 30% (interest at repayment).
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Unchanged: Discount tiers and lender bonuses on the platform fee; fee assessment mechanics; collateral coverage under P2P model.
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Transparency & reporting: The Foundation will provide periodic (e.g., quarterly) high‑level summaries of fee revenues and allocations.
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References: sLIQ overview (blog) and governance: LIP‑12.
3.1 Tiered Discount Threshold Adjustment (+50%)
To keep incentives balanced as fees rise, the minimum token holdings required to qualify for each borrower discount and lender bonus tier will increase by 50%. Bonus/discount percentages remain unchanged.
Updated holdings thresholds (apply to both borrowers and lenders):
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0 – 599 LIQUIDIUM•TOKEN → 0%
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600 – 1,799 → 5%
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1,800 – 3,599 → 10%
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3,600 – 5,999 → 15%
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6,000 – 11,999 → 20%
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≥ 12,000 → 25%
Methodology: Previous thresholds (0–399, 400–1,199, 1,200–2,399, 2,400–3,999, 4,000–7,999, ≥8,000) were multiplied by 1.5; lower bounds rounded up where applicable and upper bounds rounded down to preserve disjoint ranges.
4. Implementation
4.1 Timeline (if approved)
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Discussion: September 18, 2025 → September 23, 2025 on forum.liquidium.org.
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Voting: After discussion voting will go live on Votico on September 24, 2025 → September 29, 2025
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Effective date: September 29, 2025, unless legal or operational review requires a different date.
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Scope: Applies to new loans only created on/after the effective date; existing active loans remain under the previous schedule until they are repaid/closed.
4.2 Governance & Eligibility
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Voting will be conducted on Votico. All LIQUIDIUM•TOKEN holders are eligible to vote, with voting power proportional to holdings. To participate, hold LIQUIDIUM•TOKEN in a compatible wallet and connect to the voting portal during the voting window. Insider allocations may be locked but may still confer voting power according to prevailing governance rules and disclosures.
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Learn more about staking: LIP‑12 (Votico) and the sLIQ staking overview (blog). Links included below.
References
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sLIQ overview (blog): sLIQUIDIUM: Introducing Bitcoin’s DeFi Liquid Staking Token - Liquidium | Bitcoin Lending
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LIP‑12 on Votico: https://app.voti.co/proposal/6819ef67d9b75d04f5b2e924
5. Legal Disclaimer
The Liquidium Foundation is committed to regulatory compliance and adherence to applicable laws. Any governance proposal that is deemed to violate legal, regulatory, or compliance requirements may not be implemented. The Foundation reserves the right to seek legal or regulatory guidance before executing any proposed changes.
6. Note
This adjustment strengthens Liquidium’s long-term sustainability by funding audits, risk management, and infrastructure — while directly increasing sLIQ accruals for stakers. The change only applies to new loans, and the community will receive transparent weekly metrics on borrower demand, lender participation, and protocol revenue following implementation. Should adverse effects emerge, the DAO retains the ability to revert or refine the model. To ensure neutrality, the Liquidium team will abstain from voting, leaving this decision fully in the hands of other token holders.