Objective: Enable users who lack sufficient SOL to cover transaction fees on the Solana network by providing a limited-fee coverage option, encouraging consistent platform engagement and user retention.
Summary
This proposal introduces a “Fee Cover” feature on Orca Dex to assist users who find themselves with insufficient SOL to cover network transaction fees. This feature would allow users to complete one transaction every three months, covered by a community-supported liquidity pool sourced from a small percentage of transaction fees collected on the platform. By implementing this option, we aim to reduce friction, maintain user engagement, and provide a safety net for our community members.
Proposal Details
1. Feature Mechanism:
• Eligible users with insufficient SOL for a transaction fee can activate the “Fee Cover” feature within the app, allowing them to proceed with the transaction without needing to top up their SOL balance.
• Frequency Limitation: To prevent abuse, each user can utilize this feature only once every three months.
2. Funding the Fee Cover Pool:
• A dedicated liquidity pool for the “Fee Cover” feature will be funded through a small percentage (e.g., 0.1%) of the fees collected from all transactions on Orca Dex.
• This approach maintains sustainability and ensures a consistent reserve for future fee cover needs without significantly impacting the overall fee revenue.
3. Eligibility Criteria:
• The user must have less than the minimum required SOL in their wallet for the transaction fee.
• The feature can only be used on transactions within Orca Dex (e.g., swapping, liquidity addition/removal) to ensure it serves active platform users.
4. Transparency and Monitoring:
• Usage statistics for the “Fee Cover” feature will be shared in periodic reports, detailing the number of users who accessed the feature and the liquidity pool’s status.
• Governance oversight will be maintained, with regular reviews to assess feature performance, user feedback, and fund allocation efficiency.
Benefits
1. Increased User Retention:
• Users who encounter low SOL balances are less likely to abandon the platform, promoting sustained engagement.
2. Enhanced Accessibility:
• By providing limited fee assistance, we lower the barrier for users who may not have quick access to additional SOL.
3. Sustainable Support:
• Pooling a small portion of transaction fees ensures the program is community-funded, minimizing the impact on Orca’s overall revenue while promoting a user-friendly environment.
Risks and Mitigations
• Risk of Misuse: The once-per-three-month restriction per user will help mitigate abuse. Further, usage will be monitored to identify any unexpected patterns.
• Liquidity Depletion: By dedicating only a small fraction of transaction fees, the “Fee Cover” liquidity pool is protected from rapid depletion, keeping the feature sustainable for the long term.
Implementation Plan
1. Development: Implement the feature with clear, user-friendly notifications explaining eligibility and frequency limits.
2. Testing and Monitoring: Conduct thorough testing to ensure the system works as intended, with regular monitoring and adjustments as necessary.
3. Feedback and Optimization: After launch, collect user feedback to refine the feature and enhance usability.
Conclusion: The “Fee Cover” feature aligns with Orca Dex’s mission of fostering user accessibility and long-term engagement. By implementing this limited fee support, we create a more user-friendly environment, demonstrating Orca’s commitment to supporting our community.