Maple Finance mulls token purchases
Maple Finance is considering using protocol revenues to buy back native SYRUP tokens and distribute them as rewards to stakeholders, the decentralized finance (DeFi) protocol said in a Jan. 13 regulatory proposal.
The proposal, which awaits token holder votes, allocates 20% of the Maple Protocol's revenues for monthly purchases as an additional incentive for stakeholders. Voting will begin on January 20, Maple said.
Returns are generated from decentralized exchanges (DEXs) and over-the-counter (OTC) trading desks. As of Jan. 13, Maple was earning $5 million in annual revenue from onchain credit services, according to the filing.
“Distributing repurchased tokens to SYRUP stakeholders, the DAO [decentralized autonomous organization] It rewards those committed to the long-term health and growth of the Maple ecosystem,” Maple said in its decision.
in addition “[a]SYRUP's stakeholders' incentives are linked to protocol performance by rewarding their interests with the success of the protocol.
Maple is an onchain lending protocol. Source: Maple
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The acquisitions complement shareholder incentives from inflationary SYRUP issuance, Maple said. Based on the proposal, stakeholders will receive 20% of new SYRUP releases or around 1% of SYRUP's total supply each year.
“According to the current balance of shares SYRUP, pro-forma award amount [from token emissions] It will be ~5.0% API for stSYRUP,” said Maple.
The remaining 80% of annual SYRUP releases – or 4% of the total annual supply – will remain in the protocol's treasury, he said.
The SYRUP token is currently trading at a market capitalization of approximately $88-million, according to CoinGecko.
SYRUP is down about 60% since its launch in November. Source: CoinGecko
Value-accumulated in DeFi tokens
Projects such as Aave, Athena, and Ether.fi are pushing for DeFi protocols to contribute a share of protocol revenue to stakeholders using store-of-value methods for their generation tokens.
That's because pro-Crito-President-elect Donald Trump was elected in 2015. The November 5 US election victory signaled the start of a friendly regulatory environment for DeFi protocols, asset manager Grayscale said in December.
In the year On November 15th, Aetna, a stablecoin issuer that offers production, agreed to share a portion of its nearly $200 million in protocol revenue with token holders.
In December, Liquidity Resacking Token (LRT) issuer Ether.fi proposed that 5% of protocol revenues be distributed to stakeholders by purchasing native ETHFI tokens.
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