Maple Finance proposes to use 20% of protocol revenue to buy back the SYRUP token and reward it to stakers

BlockBeats News, January 15, DeFi protocol Maple Finance has initiated a new governance proposal, suggesting to use 20% of the protocol fee revenue starting from Q1 2025 to buy back the SYRUP token on the market and then distribute it as rewards to SYRUP stakers.

The buyback will come from DEX and OTC trading desks. As of January 13, Maple had an annual income of about $5 million from its on-chain lending services. By distributing the bought-back tokens to SYRUP stakers, the DAO rewards participants who are committed to the long-term health and growth of the Maple ecosystem.

The buyback will complement the existing inflationary SYRUP release incentives for stakers. According to the proposal, stakers will receive a 20% new SYRUP release, or around 1% of the total annual SYRUP supply. The proposal states that based on the current balance of staked SYRUP, the estimated return rate for stSYRUP (from token release) will be approximately 5.0% APY. The remaining 80% of the annual SYRUP release (or 4% of the total annual supply) will be retained in the protocol's treasury.