Adjustment for Buyback and Yield Distribution

Proposal Type: Core

Creator: Rellixx & Adrian Relic Type: Archmages

Overview: With the success of DEXT tokens implemented buyback and burn strategy, I recommend also adapting our buyback and Yield distribution to a similar strategy where majority of the yield is used towards a token burn. This will ultimately create less sell pressure each month while creating more demand and a healthier liquidity pool for the ecosystem.

Additional Details: As of current, 75% of yield is being distributed while 20% is reserved for the treasury and 5% burned is counter productive for the DAO as mage prices linger around -85% (0.022) of TGE price (0.15). This current ratio is affecting the liquidity pool as demonstrated by months of yield distribution, only for the price to increase momentary while a day or two later retraces with a small increase followed by dropping off even lower, making the yield distro ineffective and circulating a lot more mage tokens amongst relic owners who wouldn't have the liquidity to sustain their mage valuation. This negatively impacts the project as a whole in a few ways 1: It devalues the relics and creates an easier entry for new relics to be minted. Currently treasury share to Archmage is more than what it cost to mint an Archmage relic. 2: The project as a whole is not seen as attractive for new comers to join and participate in the DAO (purchasing mage to mint relic to increase the burn and adding to LP). 3: with a thin liquidity pool, token holders or new investors aren't able to buy or sell a large amount of mage without having a high price impact. 4: As the value of mage is low, the treasury's holding of mage becomes devalued as well making it harder to use mage as leverage to be accepted as collateral for future partners, advisors, or influencers.

This proposal aims to address this issue with a scaling adjustment for yield distro. The goal is to adjust the ratio so that the burn ratio of each buy back is larger than the yield distro vs the current ratio of yield being more than burn. This will help the DAO, relic owners, as well as token holders by: 1: Increasing the liquidity pool by ensuring that the liquidity injection is always more than what's possible to sell into. 2: Increases every holder's value of mage holding and relic's value 3: Increases the leverage of mage tokens held in our treasury to onboard more supporter 4: Steady upward growth in our tokenomics to attract new relic owners participation at a later stage 5: Helps sustain mage value long term especially when staking is released

Options 1, 2, and 3 will offer no yield to the Treasury by utilizing it for more token burn while the total buyback amount is between $1 - $30,000 USD. At $30,001 and on, 20% of the burn amount will be allocated to the treasury.

Strategies & Options:

Option 1> : 90% Burn and 10% Yield distribution under $30k USD or 70% Burn, 20% Treasury, 10%Yield over $30k USD

Option 2> : 75% Burn and 25% Yield distribution under $30k USD or 55% Burn, 20% Treasury, 25%Yield over $30k USD

Option 3> : 50% Burn and 50% Yield distribution under $30k USD or 30% Burn, 20% Treasury, 50%Yield over $30k USD

Option 4> : No action, keep the same 75%Yield, 20% Treasury, and 5% burn (Reject Proposal)

Timeline: Effective immediately

Bounty/Payment: NONE