EIP #01 - (Updated) Reallocation of vlEGP Streaming Rewards to EGP Buybacks

Abstract

This proposal recommends allocating 20% of vlEGP streaming rewards towards EGP token buybacks during a 3-month trial period. The objective is to support the EGP token price while enabling strategic initiatives such as ecosystem growth, incentivizing protocol usage, and enhancing Total Value Locked. After the end of the trial, the community will reassess the strategy to determine its effectiveness and decide on future adjustments.

Motivation

Eigenpie’s continued success as a governance-focused protocol depends on aligning token utility, rewards, and community incentives. Adjusting the strategy to allocate 20% of vlEGP streaming rewards for a defined duration allows for a focused and measurable approach. This adjustment ensures:

Price Support: The buybacks will directly support the EGP token price, benefiting holders by increasing value while maintaining moderate inflation levels.

Treasury Strengthening: Strengthened reserves can be deployed to incentivize bribes, liquidity pools, and other growth-driving initiatives.

Community Engagement: A structured 3-month trial period allows stakeholders to evaluate outcomes and make data-driven decisions for future strategies.

This adjustment was made in response to community feedback, which expressed concerns that the originally proposed 50% allocation might overextend resources. The revised approach balances adaptability and demonstrates a commitment to collaborative decision-making.

Specification

Allocate 20% of vlEGP streaming rewards—including EIGEN, SWELL, ZRC, and future rewards—for EGP token buybacks over a 3-month trial period. Purchased tokens will remain in the Eigenpie Treasury for deployment in strategic initiatives. The buybacks will occur at random intervals, ensuring responsiveness to protocol needs. After 3 months, the strategy will be reassessed based on its impact on EGP token performance and ecosystem growth.