Excess revenue : token burn VS. holder rewards

Hello guys,

What do you think about token burning vs. rewarding holders using the excess revenue?

Only burning ?
Only rewarding?
Both ?

I’m sure this is an unpopular opinion, but couldn’t we use it to increase the yield from 6.25% to 8% (or whatever it comes to). It might really get the juices flowing on Main Street which is good for our ecosystem.

The excess (estimated 4%) goes to dmm fund and DMG holders vote what to do with it.////2% are regularly rewarded to DMG holders, 1% are regularly repurchased and burned, and 1% are used to promote projects by the foundation. The perfect incentive plan

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This motivates people to hold DMG for a long time and makes governance more and more valuable

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Just a thought: when the assets pool get bigger and bigger, the 8% will decrease to somethink like 7% / 6% (random numbers, but you get the idea).
Isn’t it nicer to preserve the 6.25% longer for the users while decreasing the token burning / rewards for the holders ? That way the ~5% excess revenue will decrease to ~4% and the actual users will still be at 6.25%

I don’t know if this is good or bad for the ecosystem, just posting it to see what you guys think :smiley:

On the premise of guaranteeing 6.25% of users, the excess portion is used to reward DMG holders and repurchase tokens to burn, making DMG gradually deflation. This is a perfect plan, it’s great.

Once implemented, DMM DAO will continue to grow healthily, which is different from the current defi bubble, because we rely on physical business and real profits.

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I too support the token burn. Especially in the short-term, since the system is just beginning and rewards would not be that high. I believe it makes more sense.

Hello - I’d vote for burn immediately for the initial stages. Lower the supply, let the system grow.

Then I would recommend a shift to rewards - ideally only those staking would receive rewards. This would lock up more tokens, reward holders who stake and care about the ecosystem, and also prevent exchanges from gaining massive rewards just by having tokens on their exchange, if they don’t stake.

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Of course, the reward is placed in a specific wallet, and snapshots are taken every day. If the token is moved, there will be no reward. Encourage those who support and participate in the DMM DAO system for a long time,You can refer to staking on Polkadot

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One thing is that all of these can appear in the system contract situation

I would also like a burn initially for a better tax situation (in the u.s.) & then gradually as the project matures move toward a staking type reward for those that 1. Participate in votes and 2. Are long term holders. Participation in the ecosystem should be rewarded. This would also encourage that participants are larger holders.

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