Maple Finance proposes to use 20% of protocol revenue to repurchase SYRUP tokens as staking rewards

DeFi protocol Maple Finance has launched a new governance proposal, proposing to use 20% of protocol fee revenue to buy back SYRUP tokens on the market starting in the first quarter of 2025, and then distribute them as rewards to SYRUP stakers. The buybacks will come from DEX and OTC trading desks. As of January 13, Maple's annual revenue from its on-chain lending services was about $5 million. "By distributing repurchased tokens to SYRUP stakers, the DAO rewards participants who are committed to the long-term health and development of the Maple ecosystem," Maple said in the proposal. The buybacks will supplement the existing inflationary SYRUP release incentives for stakers. Under the proposal, stakers will receive 20% of the new SYRUP release, or about 1% of the total SYRUP supply each year. The proposal states that based on the current balance of staked SYRUP, the expected return on stSYRUP (from token release) will be about 5.0% APY. The remaining 80% of the annual SYRUP release (or 4% of the total supply per year) will remain in the protocol’s treasury.