Snapshot:
Objective:
Reduce management fee, preserve liquid backing.
Details:
Per CMP 8, the current management fee is 2% per year based on full total backing, distributed quarterly.
Since the treasury is 43% illiquid (as seen on the app dashboard), a large part of the management fee is paid for assets that are not liquid and further reduce the liquid backing of Volta.
The management fee is effectively 3.56% of liquid assets, currently.
In order to preserve liquid backing, reduce the yearly management fee to 2% of liquid backing.