Frax (FRAX) — Governance Rights Report

Vol. I, No. 1 Monday, August 31, 2026 Frax — Governance Rights Report

Verdict

Frax

FRAX — Governance Rights Report

Tier 1 S5 — Contract-Native Rights + Distribution Assessment as of 2026-08-31

GSA-1 pass GSA-2 near-miss GSA-3 pass GSA-4 fail GSA-5 near-miss GSA-6 fail GSA-7 fail GSA-8 fail

Why this rating: On-chain veFRAX governance (Fraxtal) with revenue distribution and gas-token burn mechanics — hard rights, with ve-model lock-up capture risk and an own-token-heavy treasury. ve-model lock-up concentration (similar to veCRV); Treasury ~99% own tokens (FRAX/FSIS/FRX) — OlympusDAO-style reflexivity

ve-model lock-up concentration (similar to veCRV)
Treasury ~99% own tokens (FRAX/FSIS/FRX) — OlympusDAO-style reflexivity

Where to Vote

Snapshot space: frax.eth

Proposal History

Proposal	Title	Outcome	Closed
0x6a9f23ce4c…	[FIP-451] Add Royco SLP to sfrxUSD Strategies	Closed	August 17, 2026
0x45031838a3…	[FIP - 450] Add Gearbox Institutional RWA Market to sfrxUSD Strategies	Closed	August 17, 2026
0xe00d756752…	[FIP-449] EchoMarket Creator & Distribution Program for Frax Finance	Closed	July 6, 2026
0xfda865b089…	[FIP-448] Wind Down the Frax Price Index (FPI) System	Closed	June 28, 2026
0xd173e667b2…	[FIP-447] Increase Aave v4 Allocation Cap for sfrxUSD Strategy from 20M to 50M	Closed	June 20, 2026

History from the Institute scanner and the 2026-08-31 recheck pulls (Snapshot Hub GraphQL / OpenSquare). Outcomes marked from recheck determinations where the proposal is named; otherwise the recorded state is shown.

Metrics

Treasury	$500.0M (gross; curated estimate)
Treasury (liquid)	$345.0M
Revenue (annual)	$35.0M
Token incentives (annual)	$40.0M
Net earnings (annual)	-$5.0M
Distribution enforcement	hard
Distribution mechanism	hard_buy_burn
Burn mechanism	buy_burn
Revenue path	Protocol revenue -> buy back FXS and burn (AMO strategies), or veFXS reward
Recourse	HARD — contract enforces distribution; holders have on-chain claim.

Model and audit state reads as of 2026-08-31 (Institute governance model / distribution audit state files). Not a Token Terminal license; curated figures update quarterly.

Structure & History

Structure: S5 — Contract-Native Rights + Distribution.

S1-S5 protocol business structure taxonomy, as-of 2026-08-27 (structure taxonomy date); scores as-of 2026-08-31 (first scored 2026-07-23)

2026-08-31 recheck — what changed

Token label FXS → FRAX (1:1 rebrand per FIP-441 '$FRAX: 1 Token, 1 Mission, 1 Vision', Jan 2026; exchanges auto-converted 2026-01-13→22)
Governance mechanics unchanged — veFRAX is veFXS renamed; S5 label unaffected; GSA cells unchanged

Source: https://gov.frax.finance/t/fip-441-frax-1-token-1-mission-1-vision/3826

First scored 2026-07-23; rechecked 2026-08-31.