Maple Finance, a decentralised finance (DeFi) protocol, has unveiled a governance proposal to allocate 20% of its revenues for monthly buybacks of its native SYRUP tokens. The initiative aims to enhance incentives for stakers and align their interests with the protocol’s success. The proposal, published on January 13, is set to be put to a tokenholder vote starting January 20.
The buybacks would source tokens from decentralised exchanges (DEXs) and over-the-counter (OTC) trading desks. Maple, which earns approximately $5 million in annualised revenues from its onchain lending services, highlighted that the buybacks would provide an additional reward mechanism for SYRUP stakers.
“By distributing repurchased tokens to SYRUP stakers, the DAO rewards those committed to the long-term health and growth of the Maple ecosystem,” the proposal stated.
Boosting Staker Incentives
Currently, SYRUP stakers receive rewards through inflationary emissions. According to the proposal, 20% of newly minted SYRUP tokens—equivalent to 1% of the total supply annually—will be distributed to stakers. Based on the current balance of staked SYRUP, the anticipated annual percentage yield (APY) from emissions stands at around 5.0%.
Maple is an onchain lending protocol. Source: Maple
The remaining 80% of SYRUP emissions, or 4% of the total supply annually, will remain in the protocol’s treasury. The proposed buybacks are designed to complement these existing incentives, providing a dual benefit for participants who stake their tokens.
Growing Value for Tokenholders
DeFi protocols like Maple are increasingly under pressure to deliver tangible value to tokenholders by offering a share of protocol revenues. This trend has gained momentum as prominent projects explore similar mechanisms.
In November, Ethena, a yield-bearing stablecoin issuer, announced plans to share part of its $200 million annual protocol revenues with tokenholders. Meanwhile, Ether.fi, a liquid restaking token (LRT) issuer, proposed in December to allocate 5% of its revenues to buy back ETHFI tokens for distribution to stakers.
SYRUP is down roughly 60% since launching in November. Source: CoinGecko
This growing emphasis on value accrual aligns with a broader industry shift, supported by what many view as a favourable regulatory environment for DeFi following pro-crypto President-elect Donald Trump’s victory in the U.S. election on November 5.
SYRUP Market Overview
As of now, the SYRUP token boasts a market capitalisation of approximately $88 million, according to CoinGecko. By implementing buybacks and tying rewards to protocol performance, Maple aims to strengthen its ecosystem and attract long-term staker participation.
The proposal reflects an ongoing evolution in DeFi, where tokenholder benefits are increasingly tied to the financial success of the protocol. If approved, Maple’s strategy could set a benchmark for similar initiatives in the space.
