MIP-016: Q2 Fee Buyback Continuation

Overview

MIP-016 proposes to use 20% of protocol fee revenue from Q2 2025 to buyback $SYRUP tokens then distribute these as rewards to stakers of $SYRUP. This is a continuation of the monthly buybacks that were voted on and approved by the SYRUP community at the beginning of this year.

Detailed Proposal

In January 2025, MIP-013 was passed overwhelmingly, resulting in three months of buybacks throughout the quarter. A total of ~235,000 USDC of revenue was used to purchase ~1.96M $SYRUP tokens at an average price of 11.8 cents. 100% of these tokens were subsequently streamed to stakers.

This proposal continues with this allocation of 20% of protocol fee revenue to purchase $SYRUP on the open market in the same manner throughout Q2 2025. The purchased $SYRUP tokens will again be streamed via smart contract to holders of staked $SYRUP (stSYRUP).

Maple is now generating approximately ~$6m in ARR from fees on the loan book and other assets under management. TVL has grown rapidly, recently surpassing $1bn, while new products including BTC Yield are seeing tremendous growth.

Rationale

The advantages of a buyback mechanism remain the same as the initial proposal for Q1:

Reward Long-Term Stakers: By distributing repurchased tokens to $SYRUP stakers, the DAO continues to reward those committed to the long-term health and growth of the Maple ecosystem. Increase Staking Incentive: The additional staking rewards will increase staking ratio and overall participation in the governance and decentralization of Maple. Implementation

Should MIP-016 pass, buybacks will be implemented in the same manner as Q1:

Revenue Allocation: 20% of the protocol revenue over Q2 2025 will be allocated for token buybacks. Monthly Purchases: The buyback will be performed following the end of each calendar month based on the revenue earned during the month. Distribution to $SYRUP Stakers: All tokens bought back through this mechanism will be distributed proportionally to $SYRUP stakers, based on their staking amount at the time of each distribution.