Maple Finance proposes 20% revenue buybacks for staker rewards

Maple Finance (CRYPTO:SYRUP) is considering a governance proposal to allocate 20% of its protocol revenues for monthly buybacks of its native SYRUP tokens, aimed at enhancing rewards for stakers.

This proposal, which is set to be voted on by tokenholders starting January 20, intends to distribute repurchased tokens as incentives for those who stake SYRUP.

The buybacks will be conducted through decentralised exchanges (DEXs) and over-the-counter (OTC) trading desks.

As of January 13, Maple reported annualised revenues of approximately $5 million from its on-chain lending services.

“By distributing repurchased tokens to SYRUP stakers, the DAO [decentralised autonomous organisation] rewards those committed to the long-term health and growth of the Maple ecosystem,” the proposal stated.

Furthermore, the initiative aims to align the interests of SYRUP stakers with the performance of the protocol, creating a direct connection between rewards and the protocol’s success.

In addition to the buyback strategy, stakers will also benefit from inflationary SYRUP emissions, which will provide them with 20% of new emissions, translating to around 1% of SYRUP’s total supply annually.

Based on current staking levels, this could yield an estimated annual percentage yield (APY) of approximately 5% for staked SYRUP (stSYRUP).

The remaining 80% of annual SYRUP emissions will be retained in the protocol's treasury to bolster liquidity and operational capabilities.

Currently, the SYRUP token has a market capitalisation of roughly $88 million but has seen a decline of about 60% since its launch in November.

This move by Maple Finance reflects a broader trend in decentralised finance (DeFi) where protocols are increasingly pressured to share revenue with tokenholders.

Projects like Aave (CRYPTO:AAVE) and Ether.fi (CRYPTO:ETHFI) have also initiated similar value-accrual mechanisms in response to growing demand for tangible financial benefits from DeFi ecosystems.

At the time of reporting, the Maple Finance (SYRUP) price was $0.1195.