I’ve read through this thread a number of times now and the more I think about this, the more it becomes clear that there is no good solution to distributing protocol fees on Layer 1.
While the protocol switch should be considered (although I think we need to consult Liquidity Providers first), the mechanism for distributing funds should not be rushed.
It may be that there are far more efficient and value-creating distribution methods possible with the OVM on Layer 2.