While there are many topics in the above post, I’d like to focus on one in particular. I believe there are different approaches to consider, and I’ve been in discussions with several other protocols who are also reevaluating their tokenomics.
There’s definitely merit in maintaining a connection between our buybacks and distributions, though it doesn’t need to be as directly linked as our current BB&D (Buyback & Distribute) mechanism.
Buybacks serve an important purpose by removing tokens from circulation, especially during periods of low token prices. Meanwhile, the distribution function allows us to reward long-term token holders. The key question is whether we need to automatically distribute our buybacks every week at full capacity. I’m comfortable saying we don’t need to maintain this rigid schedule and should explore our alternatives.
We could implement a more strategic mechanism where distributions are triggered based on specific conditions, such as:
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Trading below certain technical indicators (as mentioned above)
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Fundamental disconnects between protocol performance and token price
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Other market-based or protocol-specific metrics
This approach would allow for more thoughtful and impactful use of our buyback and distribution capabilities.