A simplified fee split allocation (sFSA) is now active on the COSS exchange. The sFSA began on September 19th and simplifies the way you accrue your 50% fee split with COSS.
The new sFSA means you will now collect COS, ETH and DAI only, in the daily FSA.
What is the Fee Split Allocation?
If you’re new to COSS, you might not be familiar with the term FSA. The Fee Split Allocation (FSA) is the 50% share of all exchange fees distributed to COS token holders.
The distribution is performed by an automated script that typically completes around noon, Singapore time. This script calculates what fees taken from the exchange should be paid to COS token holders, depending on the number of tokens held and the total number of COS tokens included in the snapshot. See more information about the coins in the snapshot on the COSS statistics page.
Your share of the fees are directly deposited to your FSA wallet on the COSS exchange. To distribute them to your personal wallet or your COSS exchange wallet costs a small 0.001 ETH fee.
How Does the New sFSA Work?
COSS has changed the way that fees are collected on the exchange. Fees are now only collected in the quote pair.
At the time of writing, the quote pairs on COSS are BTC, ETH, COS, USDT, DAI, USD and EUR.
Like before, all non-ERC20 tokens are converted to ETH at the time of the fee split, that means and fee collected from BTC, USDT, USD and EUR are converted to ETH before sharing via the FSA.
Because of this change, you will now receive COS, ETH and DAI only, in your daily fee split.
Here’s Why the sFSA is Better
Before the sFSA, the fee model on COSS meant that tiny amounts of altcoins were collected as fees. As we entered the bear market, interest in altcoins, and their prices dropped.
The value of the various coins collected in the FSA became insignificant, due to the large variety of coins collected and also more users choosing to pay fees in COS (to receive a 25% fee discount). This meant most users found it economically unviable to distribute a large portion of their FSA.
As the FSA is now accrued in just 3 coins, the value of your FSA is concentrated across COS, ETH and DAI.
The majority of the FSA is still COS, due to the generous 25% fee discount incentive, but the dust collected in other coins is now primarily ETH due to the change in how fees are collected.
In summary, this change means you can distribute your FSA more often, making the power of compounding interest stronger.
If you want to see more information about the FSA, check out the COSS statistics page that has various stats on the ROI, coins collected and value of the FSA.
Read the official medium announcement about the simplified fee split allowance here.