Purpose

This proposal allocates treasury funds to buy back HOME tokens at 1.5x the amount distributed through the Kaito Season 2 campaign. For every HOME token unlocked by campaign participants, the DAO will purchase 1.5 HOME tokens from the market, creating net deflationary pressure over the campaign period.

Motivation

The DAO has committed 125M HOME tokens to incentivize social engagement through KaitoAI's tracking platform, comprising 100M HOME for Season 2 participants and 25M HOME for retroactive Season 1 distributions. While this campaign drives awareness and engagement, token distributions create potential selling pressure as participants unlock rewards.

By implementing a 150% buyback ratio synchronized with unlock events, the DAO transforms a marketing expense into a treasury-building opportunity while demonstrating confidence in HOME's long-term value proposition. This mechanism reinforces net positive buy pressure throughout the campaign period.

Rationale

The proposed 1.5x buyback multiplier creates a simple, yet compelling incentive structure where participants understand that collective unlocking behavior triggers greater buying volume than selling volume. This approach incentivizes long-term holding while providing price support for those who choose to unlock, ensuring the campaign creates more buying than selling pressure.

Leveraging the existing DIP-004 TWAP infrastructure minimizes implementation complexity while maintaining execution quality. The self-limiting nature of the mechanism—buybacks only occur when participants unlock—ensures treasury deployment remains proportional to actual distribution rather than theoretical maximums.

Key Terms

Kaito Campaign: The 60-day social engagement program tracked by KaitoAI where participants earn HOME tokens based on social media activity and staking participation.

Unlock Volume: The quantity of HOME tokens that campaign participants convert from locked to liquid status during each weekly period following the 60 day campaign.

Buyback Multiplier: The 1.5x (150%) ratio applied to unlock volumes to determine weekly buyback targets.

Campaign Period: The duration of the campaign beginning July 28, 2025, during which the Kaito tracking and this buyback mechanism remain active.

Specifications

Technical Requirements

Buyback Parameters

Multiplier: 1.5x (150%) of weekly unlock volumes
Duration: 60 day Kaito campaign followed by weekly HOME unlocks based on XP earned by Kaito users
Maximum Commitment: 187.5M HOME equivalent (150% of 125M HOME distribution)
Execution Method: Weekly TWAP using existing DIP-004 infrastructure

Volume Tracking

Data Source: On-chain unlock events from Kaito distribution contracts
Measurement Period: Rolling 7-day windows

Implementation Details

Operational Framework

The Executive Operations Working Group coordinates with existing DIP-004 buyback operations to:

• Monitor weekly Kaito participant unlock volumes
• Calculate required buyback amounts (unlock volume × 1.5)
• Execute TWAP purchases through approved venues

Integration with DIP-004

This mechanism operates as a supplementary allocation to the base 80% revenue buyback established in DIP-004:

• Separate tracking for Kaito-specific buybacks
• Combined execution through shared TWAP infrastructure
• Unified treasury management of acquired tokens

Safeguards

Self-Limiting Design: Buyback obligations only materialize when participants actively unlock tokens, preventing treasury commitment without corresponding distribution.

Price Impact Controls: Maintain DIP-004's 2% maximum price impact per execution period, extending TWAP windows if necessary to accommodate larger volumes.

Emergency Override: DAO Council retains authority to adjust or pause the program through expedited governance if market conditions warrant intervention.

Affected Systems

• Kaito distribution contract monitoring infrastructure
• Weekly unlock volume calculation systems
• TWAP execution infrastructure (shared with DIP-004)
• Treasury reporting and tracking systems

Steps to Implement

1. Post-Campaign Allocation Process: Following the 60-day Kaito campaign conclusion, receive participant allocation data from KaitoAI and distribute locked HOME tokens to eligible participants.

   Resources Required: Allocation processing, distribution contracts

2. Unlock Monitoring Infrastructure: Configure automated tracking of weekly HOME unlock events as participants engage with the platform.

   Resources Required: Smart contract integration, monitoring dashboard

3. Buyback Execution Framework: Extend DIP-004 TWAP systems to accommodate weekly 1.5x buyback volumes based on participant unlock activity.

   Resources Required: Technical configuration, treasury allocation

Timeline

Phase 1: Infrastructure preparation during campaign period

Phase 2: Allocation and buyback operations following campaign conclusion

Campaign Duration: 60 days from July 28, 2025

Buyback Period: Begins after campaign conclusion, continues weekly based on unlock activity

Budget Breakdown

Category	Cost	Description
Maximum HOME commitment	187.5M HOME*	150% of total distribution pool
Infrastructure	$0	Utilizes existing DIP-004 systems
Operations	~$1,000	Dashboard and monitoring setup
Total Setup Cost	~$1,000	One-time implementation

*Actual deployment depends on participant unlock behavior

Risk Assessment

Financial

Concentration: Large synchronized unlocks could require substantial weekly buybacks. Mitigation through extended TWAP windows and price impact limits.

Treasury Planning: Maximum 187.5M HOME commitment requires adequate treasury reserves. At current USD token price of $0.03406 as of July 29, 2025, this will require $6.4M of funding.

Operational

Unlock Clustering: Participants may coordinate unlock timing. Mitigation through consistent weekly execution regardless of volume variations.

Data Reliability: Dependency on accurate unlock tracking. Mitigation through redundant monitoring systems and manual verification options.

Success Metrics

• Net TOKEN FLOW: Positive (1.5x buyback ensures more buying than distribution)
• Price Stability: Reduced volatility during campaign period
• Participant Behavior: Percentage choosing to hold versus unlock
• Treasury Efficiency: Actual deployment versus maximum commitment

Dependencies

• Active Kaito Season 2 campaign (launched July 28, 2025)
• Functional DIP-004 buyback infrastructure
• Sufficient treasury reserves for maximum potential deployment
• Reliable unlock event monitoring from distribution contracts

Legal and Compliance Considerations

This mechanism constitutes strategic treasury management responding to predetermined on-chain events rather than discretionary trading. The 150% multiplier applies uniformly to all unlock events without regard to participant identity or market conditions, maintaining operational neutrality.

The buyback program operates independently from the Kaito campaign's marketing objectives, serving exclusively as a treasury mechanism to manage token circulation dynamics. No coordination exists between campaign operations and buyback execution beyond mechanical volume measurements.

All acquired tokens remain in DAO treasury reserves subject to future governance decisions, maintaining clear separation from any profit-sharing or value distribution mechanisms. The Executive Operations Working Group ensures ongoing compliance with this framework throughout campaign period.