How Do DAOs Generate and Distribute Revenue to Token Holders?

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DAO Revenue Sources

Not all governance tokens are created equal. Understanding how DAOs generate and distribute revenue helps identify tokens with real value accrual.

Common Revenue Sources

  • Trading fees: DEX swap fees, perpetual trading fees
  • Lending spreads: Interest rate differential
  • Liquidation fees: Fees from position closures
  • Service fees: Bridges, NFTs, oracles

Key Takeaways

  • Distribution methods include direct fee sharing, ve-tokens, buybacks, and treasury growth
  • Real yield is paid in ETH/USDC from actual revenue, not token emissions
  • Top real yield protocols: GMX, Curve, Maker, dYdX
  • P/E ratios help compare value across protocols