Flaunch's "100% fees to the creator" model was a strong GTM thesis, and it's still a core differentiator. 

Now that the protocol has been live for over 1 year with 0% protocol fee, I'm proposing we enable the protocol fee switch so the protocol can begin accruing a small, sustainable revenue stream that $FLAY holders can govern and allocate via follow-up proposals.

Proposed parameters (economic intent)

• Set protocol fee share to 10.00% of the existing 1% swap fee (i.e. 0.1% of trade volume)
• Example: 1,000 ETH volume → 1% swap fee = 10 ETH → 10% to protocol = 1 ETH available for governance-directed use

Onchain change (what this proposal executes)

• Call setProtocolFeeDistribution(10) on all Active Position Managers that ever deployed any tokens (0x51Bba15255406Cfe7099a42183302640ba7dAFDC, 0xF785bb58059FAB6fb19bDdA2CB9078d9E546Efdc, 0xB903b0AB7Bcee8f5E4D8C9b10a71aaC7135d6FdC, 0x23321f11a6d44Fd1ab790044FdFDE5758c902FDc, 0x8DC3b85e1dc1C846ebf3971179a751896842e5dC)

Note on PositionManager 0xF785bb58059FAB6fb19bDdA2CB9078d9E546Efdc

Protocol fees from PositionManager 0xF785bb58059FAB6fb19bDdA2CB9078d9E546Efdc currently route to the Flayer Foundation multisig. The documentation notes the Foundation is not obligated to apply these funds to any specific action (including buybacks) or to follow token holders preferences. We acknowledge this constraint, and we'd encourage the Foundation - purely on an alignment basis - to voluntarily mirror the outcomes of future $FLAY holder proposals when deciding how to deploy any accrued protocol fees.

Where the fees go / how they’re used

Protocol-allocated fees are stored onchain in FeeEscrow and claimable by ProtocolFeeRecipient, in native ETH, to fund future governance-approved actions.

Future-proofing (to avoid repeated “enable” proposals)

Because protocol fee configuration is per-PositionManager, this proposal also sets the expectation that all future PositionManagers should ship with the fee switch enabled at the same setting (10%) by default, so governance doesn’t need to run a separate "turn it on" proposal each time a new PositionManager is deployed. Governance can still adjust the percentage later if desired.

Cost / risk

No treasury spend in this proposal - just the onchain configuration change (gas only)