The Fee Split Allocation (FSA) is the 50% share of all exchange fees distributed to COSS token holders. Previously this has been paid weekly, but in today’s official Medium update from COSS, it was announced the FSA is soon to be paid daily.
The FSA distribution is an automated script that runs Monday evenings (around 16:00 Singapore time). This script calculates what fees taken from the exchange should be paid to COSS token holders, depending on the number of tokens held and the total number of COSS tokens included in the snapshot.
COSS is looking to implement a daily run of the FSA script from as earlier as the end of next week.
FSA Distributions to Occur Daily
Daily FSA distribution was always planned with the recent upgrade of the COSS exchange to version 1.2. It is also a feature that has been frequently requested by the community.
At current volume and average fees, the value of a daily FSA would be around $0.35 per 10,000 COSS held.
The Benefits of a Daily Distribution
The primary reason for moving to a daily distribution of FSA, is to ensure that the estimated USD value of the FSA is a more accurate reflection of what was actually distributed.
The problem was visible most recently with the launch of CFT. As was expected, the USD value of CFT dropped shortly after trading opened. This meant that the USD value of the FSA was almost half what people were expecting – even though the amount of tokens received had not changed much.
Better Estimated USD Value for FSA
With a daily distribution, the estimated USD value would also be updated daily, making it a more accurate reflection of the real USD value. It also becomes less vulnerable to inaccuracies should a token in the FSA have a sharp rise or fall in value.
Positive Psychological Factors of Daily Distribution
Another benefit of a daily FSA distribution is a psychological one. Something that pays out a real value, everyday, sounds more appealing to investors. There is less of an apparent risk if the FSA can be collected whenever the user desires.
Initially, whilst the exchange volume and FSA is still ‘low’, there could be a negative effect as well. COSS holders have become used to seeing values such as $2+ per 10K COSS for the weekly FSA. This equates to around $0.35 a day. Even though it would be paid 7x a week, the number is still lower and could make the perceived returns of holding COSS seem less.
No Weekly COSS Token Dumps
Some traders like to hold COSS before and during the FSA snapshot to ensure they get their entitlement to the FSA, before then selling their COSS stack to try and swing trade during the week.
This weekly influx of COSS tokens on to the market puts selling pressure on the token, which of course lowers the price.
Although not noticeable every week, removing the weekly FSA should make the COSS token’s price more stable.
Any Negatives for a Daily Distribution?
On the whole, moving to a daily FSA distribution seems like a positive move. However, there could be some potential speed bumps along the way.
At the exchange’s current volume, the USD value of a daily distribution will be quite ‘low’. Meaning COSS holders will need to wait some time before distributing their FSA to their account wallets anyway.
Not all users are aware that the FSA holdings can be held indefinitely, so some may try to take their FSA profits as often as possible. If their COSS holding is small, this might prove to be very inefficient with the 0.001 ETH fee!
With the current on-site analytics we have for the FSA, keeping track of how it is doing will be more difficult. Statistics will be displayed for the day only, with no history, if it is kept how it is.
I’ll continue to do a weekly roundup of the FSA, looking at the total coins received over the week and comparing it to the previous week.
The FSA script is going to be running on a daily basis, once daily distributions go live. This is also another potential point where issues could occur. With the script running 7 times a week instead of one, there are more opportunities for errors to occur. The FSA has been running very well (apart from a slight hiccup when PGT changed ticker to PGTS), so this is unlikely to be of real concern.
Community Feedback on the Daily Distribution
In the official COSS telegram, the move towards daily distribution has been received positively.
If you have any thoughts on this change, positive or negative, please share them in the comments section below.