Freezer Revenue Token (FRZ)

The Early Withdrawal frETH fee and WETH penalty are paid to stakers of the FRZ token.

The FRZ token acts like a standard dividend receiving asset. The value flow of inbound frETH and WETH determines its theoretical value. It's market value is free market determined. There are no liquidity incentives for the FRZ token. The FRZ token's supply inflates over time to ensure that earlier adopters do not have an unfair advantage over long-term users of the protocol. Newly inflated FRZ is split proportionally among everyone who burns frETH. Burning frETH earns FRZ forever - but the proportion of FRZ earned falls as others burn frETH too.

For more info on the supply of FRZ see: FRZ Inflation Schedule