RP-6(A): REZ Buyback Program - Targeting 10% of Total Supply Over 6 Months

Reference

This proposal is a continuation and sub-proposal of the initial Buyback & Burn Program (RP-6), which outlines a plan to repurchase and burn up to 10% of the total REZ supply over a 6-month period or until the target is achieved, whichever occurs first.

Summary

RP-6(A) seeks to officially initiate the buyback program under the direction of the Renzo Foundation, while also incorporating previously executed repurchases into the formal scope of the program.

This phase represents the execution component of the original RP-6 framework, ensuring that community-approved parameters are enacted transparently and in alignment with prior commitments.

Motivation

Following extensive community feedback during the initial discussion phase of RP-6, it was agreed that a split-proposal structure would offer greater clarity and governance precision.

The creation of RP-6(A) allows the community to vote specifically on the initiation of the buyback program, while a subsequent proposal will cover token burning mechanics.

As highlighted in a comment by @velvetmilkman:
“A more systematic approach is rational and aligns with best practices in governance disclosures (e.g., separate votes for capital deployment vs. token usage).”

This structured approach strengthens governance transparency, improves accountability, and aligns Renzo’s decision-making with industry best practices.

Implementation

On the passing of this proposal, the Buyback program will officially kickstart aiming for 10% of the total REZ supply within a 6-month timeline.

• Target Buyback Amount: Target a buyback quantity equivalent to 10% of the total REZ supply.
• Timeline: 6 months from the date of proposal approval, or until the target is met, whichever comes first.
• Funding Source:
  • Initial allocation: 1% of the total REZ supply (approximately 100M REZ) has already been purchased between October 8th and 9th, 2025, using a portion of Q3 2025 protocol revenue from the following wallet: Address: 0x8d8Cf665...d26B28599 | Etherscan
  • Ongoing: 75% to 100% of all future protocol revenue within the 6 month program period (determined based on operational needs and community feedback).
  • The protocol may tap into historical revenues for discretionary buyback and burns.
• Termination Conditions: The program ends when either 10% of the total supply has been bought back (and subsequently burned/distributed) or after 6 months, regardless of progress. I.e. If 10% of the total REZ supply is purchased before the 6 months then the program ends. Alternatively, if at the end of 6 months, 9% of total REZ supply was purchased, the program would end and require a new governance proposal for additional buybacks.

Specifications

• Public Revenue Dashboard: Will be live on the protocol’s public Dune dashboard https://dune.com/renzo_team/renzo-protocol
• Buyback Address(s)
  • Address 1: Revenue is directed to this address and a bot automatically executes the repurchase of REZ https://etherscan.io/address/0x7d7445b6e7098efBDEAfA4A24f443847D5dAA262#internaltx
  • Address 2: Address where all the repurchased REZ is being held https://etherscan.io/address/0x8d8Cf66582e5866c99fDb548E424b13d26B28599#tokentxns

Risks and Mitigations

• Market Volatility: Buybacks could influence REZ price; mitigated by gradual execution and monitoring market conditions.
• Revenue Shortfall: If protocol revenue is lower than expected, the target may not be met within 6 months; the program will still terminate at the deadline.
• Community Feedback: If issues arise, a follow-up proposal can adjust parameters (e.g., revenue percentage).

Voting Options

• Yes: Approve the buyback program as described.
• No: Reject the proposal.
• Abstain: No opinion.