Proposal: MILK Buy Back mechanism
Objective: Create a mechanism to Buy Back MILK Using the ADA fees collected on the MuesliSwap platform.
Implementation:
Fee Collection: Allocate 20% of the fees generated by the protocol In ADA to then Convert in to MILK to the treasury.
One way that bought MILK can be used is.
Staking Rewards: Introduce a Flexible staking mechanism where MILK holders can Stake their MILK.
By staking MILK tokens, holders become eligible to receive a portion of the fees collected by the protocol.
50% of the 20% of the fees being bought back as MILK will go towards this program and the rest will be added to the treasury.
Benefits for Token Holders:
Passive Income: Staked MILK token holders would earn a regular passive inflow of MILK
Value Accretion: By distributing a portion of the fees back to token holders, the value of MILK tokens could increase over time. As the demand for the token grows and more fees are collected, the redistributed fees contribute to a higher floor price for the token.
Community Engagement: The staking mechanism encourages active participation in the governance and decision-making process. Token holders have a vested interest in the success and growth of the platform, leading to a more engaged and committed community.
Long-Term Incentives:Staking mechanism incentivizes long-term holding and reduces short-term speculative behavior. This can help create a more stable and sustainable token ecosystem.
Price of MILK token:The Buy Back mechanism can put Upwards pressure on the price of MILK
Further rewarding long term holders.
Written by: Crypto Bamba 