Lately I’ve been thinking about something else: extractive fees should be accrued to parties at the periphery and not to the protocol/DAO.

“Extractive fee” is kind of a cynical framing. I am referring to fees that are being taken just because they can. The protocol could work without these fees, perhaps even better, but some party wants a reward for their work.

One example would be the fees that some borrowing/lending protocols take, between what the borrower pays and what the lender receives. Another example would be trading fees, such as Uniswap could charge.

Uniswap is a very interesting example, I think. Much has been made of the “flipping the fee switch.” The DAO could set a fee, a percent of the swap fee for a given pool, that goes to the DAO.