Tip Streams

The TipJar is used to align incentives of Third Party Actors. This is achieved with the TipJar's Tip Stream functionality. It allows Third Party Ecosystem Actors to be approved by Governance and receive a percentage of fees accrued to the TipJar. Residual fees are transferred to the Protocol Treasury.

Actors performing recurring services for the global good of the Protocol, as opposed to one-off services, will benefit from certainty that fees will be paid out. Once tip streams are established, fees are paid without requiring Governance approval for specific payments - mitigating concerns for Protocol actors.

A concrete example might be Risk Management services for the Protocol, where a Risk Manager monitors and recommends changes to the risk parameters of the Fleets and ARKs. The Risk Manager might also perform risk assessments of the economic suitability of proposed new ARKs.

Tip Streams can also be configured with an optional minimum term. This gives additional confidence to Third Party Actors who have certainty over the duration of the Tip Stream they've been granted. They can then perform their service remit without fear of their Tip Stream being removed or altered.

For Third Party Actors that are not suitable for recurring, revenue-share style compensation, these providers can still get compensated by the treasury - subject to a Governance vote.