Frax: USDH Buyback Ratio to Be Determined by the Community, Ecosystem Data to Remain Transparent

BlockBeats News, September 9th, Frax Vice President of Growth, Sean Kelley, stated at the "USDH Stablecoin Roundtable" hosted by Hyperliquid that regarding the question of "whether to allocate funds from revenue for buyback," he believes that the specific allocation ratio should be determined by the community. Frax strongly hopes to address this issue through governance. This may require finding a balance in the following areas: allocating some funds for buyback to support further growth of USDH and improving other areas in the ecosystem that are considered weaker. The specific percentage should ultimately be determined by the community.

As for the transparency of revenue distribution, Frax places great emphasis on data visualization, hoping to ensure that fund flows can be transparently traced. Data will be published on a dashboard for user access, essentially tracking everything on-chain in the ecosystem. Regarding buyback distribution, Frax believes that conducting it quarterly may be reasonable, and all operations will be executed through smart contracts.

BlockBeats previously reported that last Friday, Hyperliquid announced the launch of a "US dollar stablecoin that is Hyperliquid-first, aligned with Hyperliquid principles, and compliant," and reserved the USDH ticker for it. Subsequently, several stablecoin issuers, including Paxos, Frax Finance, Ethena Labs, and Agora, have rapidly entered the competition for the right to issue the USDH stablecoin.