Proposal: Adjusting Protocol Fee and Vault Fee to Enhance Network Activity

MAP Protocol - Adjusting Protocol Fee and Vault Fee to Enhance Network Activity

Proposer: MAP Protocol Foundation
Date: 09/01/2026


Timeline

The voting period for this proposal will end on 16/01/2026.


Background

MAP Protocol enables secure and efficient cross-chain asset transfers through a decentralized liquidity network. The current fee structure was designed to support network security, liquidity providers, and long-term protocol sustainability.

As MAP Protocol continues to expand its cross-chain integrations and usage scenarios, optimizing transaction costs becomes increasingly important to remain competitive and to unlock greater on-chain activity.


Proposal Overview

This proposal suggests reducing MAP Protocol’s Protocol Fee and Vault Fee to 0.01% respectively.
The goal is to encourage higher transaction volume, improve liquidity utilization across vaults, and enhance overall network activity while maintaining sustainable protocol economics.


Purpose

The purpose for this proposal is to:

  • Reduce friction for users and integrators executing cross-chain transactions

  • Encourage higher transaction frequency and protocol usage

  • Improve capital efficiency by increasing vault liquidity utilization

  • Strengthen MAP Protocol’s position as a cost-efficient cross-chain infrastructure

Lower fees are expected to attract more organic usage and better leverage existing liquidity without changing the core protocol design.


Proposal Details

This proposal recommends adjusting the following fee parameters:

Fee Type Current Rate Proposed Rate
Protocol Fee 0.022% 0.01%
Vault Fee 0.018% 0.01%

No other parameters, including balance incentives or governance mechanisms, are affected by this proposal.


Rationale

  • Increased Transaction Volume:
    Lower transaction costs reduce barriers for users and applications, encouraging more frequent cross-chain activity.

  • Improved Liquidity Utilization:
    Higher transaction throughput leads to better usage of existing vault liquidity, increasing overall efficiency.

  • Support for Liquidity Providers:
    While per-transaction fees decrease, increased volume may compensate through higher aggregate fee generation.

  • Long-Term Network Growth:
    A more active network strengthens ecosystem adoption and supports sustainable MAPO token value creation.


Impact

  • Users: Lower transaction fees and improved experience

  • Liquidity Providers: Higher vault activity and utilization

  • Protocol: Increased on-chain activity and stronger network effects

All fee collection and distribution remain fully on-chain and transparent.


Governance & Implementation

  • Upon approval, the proposed fee changes will be implemented through governance execution.

  • Future adjustments remain subject to MAPO DAO governance processes.


Conclusion

Reducing both Protocol Fee and Vault Fee to 0.01% aims to enhance MAP Protocol’s competitiveness, improve liquidity efficiency, and support long-term ecosystem growth through increased network activity.


Vote Now
The MAPO community is encouraged to participate in the governance process. Cast your vote on the proposal :point_right:t3: MAPO Governance.