Maple Finance proposes using 20% of revenues for monthly SYRUP buybacks to reward stakers, with voting starting January 20.
Maple Finance is considering using part of its protocol revenues to buy back native SYRUP tokens and distribute them as rewards to stakers, according to a governance proposal issued on January 13.
The proposal, which is subject to approval through a tokenholder vote, recommends allocating 20% of Maple’s protocol revenues for monthly buybacks to incentivize stakers.
Voting is set to begin on January 20. The buybacks would take place through decentralized exchanges (DEXs) and over-the-counter (OTC) trading desks.
As of January 13, Maple’s onchain lending service has been generating roughly $5 million in annualized revenues, according to the proposal .By distributing the repurchased tokens to SYRUP stakers, Maple aims to reward those who are dedicated to the long-term success and growth of the Maple ecosystem, the proposal explains.
Additionally, the proposal emphasizes that rewarding stakers with these tokens aligns their interests with the protocol’s performance, connecting their success to the overall success of the protocol.
These buybacks would complement the current rewards for stakers, which come from inflationary SYRUP emissions. According to the proposal, stakers currently receive 20% of new SYRUP emissions, roughly 1% of the total SYRUP supply annually.
The proposal further notes that, based on the current staked SYRUP, the projected rewards rate for SYRUP holders would be around 5.0% APY.
The remaining 80% of annual SYRUP emissions or 4% of the total supply annually would stay in the protocol’s treasury. SYRUP currently holds a market capitalization of approximately $88 million, according to CoinGecko.
DeFi protocols are facing increasing pressure to distribute protocol revenues to tokenholders. Other projects such as Aave, Ethena, and Ether.fi are also exploring methods to create value for their native tokens.
This shift is partly driven by the expectation that a more favorable regulatory environment for DeFi protocols will emerge under President-elect Donald Trump, following his election victory on November 5, according to asset manager Grayscale in December.
On November 15, Ethena, a yield-bearing stablecoin issuer, revealed plans to share a portion of its $200 million in protocol revenues with tokenholders.
In December, Ether.fi, a liquid restaking token issuer, proposed allocating 5% of protocol revenues to repurchase native ETHFI tokens and distribute them to stakers.
