Solana News Today: Marinade DAO Redirects Fees to Treasury, Launches $5M Annual Token Buybacks and Potential 50% Supply Burn

Marinade DAO has proposed a transformative set of measures to enhance token value and community governance through MIP-11 and related initiatives. Under this proposal, all protocol fees will be redirected to the DAO treasury, effectively eliminating team allocations and centralizing future revenue streams within the community-controlled fund [1]. A significant portion—50%—of these fees will be used for open market repurchases of $MNDE tokens, with an estimated annual outlay of $5 million. These repurchases will be executed monthly and transparently, with all transactions publicly traceable, and the governance proposal MIP-13 is set to outline the implementation framework shortly [1].

According to analysis by the SolanaFloor data insight team, the potential impact of the buyback program could result in the removal of over $49 million of $MNDE from circulation annually. This would equate to an effective annual token contraction rate of 4.9%. The analysis further notes that Marinade’s income streams from $SOL inflation, MEV, and SAM fees have remained robust, with recent average daily earnings reaching approximately $380,000 at their peak [1]. This financial strength underpins the feasibility of the proposed buyback and burn mechanism.

Another key proposal, MIP-14, aims to burn between 20% to 50% of the total $MNDE supply. Given the token’s capped supply of one billion, this would result in the removal of between 200 million and 500 million tokens, reducing the total supply to between 500 million and 700 million. Such a reduction could trigger a deflationary effect similar to what was observed with $OKB after a 75% supply reduction led to a 193% price surge [1]. If the burn proposal is approved alongside the ongoing buybacks, $MNDE could be positioned to experience a similar scarcity-driven price trajectory.

In addition to these deflationary measures, Marinade will introduce an Active Staking Rewards (ASR) program in 2025. The ASR will distribute $25 million worth of $MNDE to governance voters, incentivizing broader participation in decision-making and encouraging long-term token retention [1].

These initiatives reflect a broader trend among leading Solana-based DAOs to utilize protocol revenue more strategically. For instance, OrcaDAO has proposed injecting $SOL into its Orca validator and initiating a 24-month $ORCA token buyback plan. Marinade’s approach, however, stands out for its comprehensive integration of treasury management, token economics, and community governance [1].

Recent milestones further underscore Marinade’s momentum. In July 2024, the protocol crossed $10 million in cumulative earnings. On August 7, it partnered with institutional crypto custodian BitGo, enabling $SOL holders to stake via Marinade Native and earn up to 4% additional annual returns in $MNDE. Additionally, Marinade became the exclusive staking provider for Canary Capital’s Solana Staking ETF, positioning it to benefit from increased institutional demand if the ETF application is eventually approved [1].

Currently, $MNDE trades at $0.01174, with a $51 million market cap and a fully diluted valuation (FDV) of $117 million. If the 50% burn proposal is enacted, the FDV would be cut in half, reflecting the potential valuation impact of supply reduction [1].

Marinade’s strategic overhaul of its token economics, combined with its strong operational performance and institutional partnerships, positions it to strengthen token utility and governance participation while reinforcing the direct link between platform success and token holder value [1].

Source: [1] Marinade DAO Proposes to Buyback and Burn Up to $500M MNDE, Redirects 100% of Protocol Fees to Community Treasury (https://solanafloor.com/zh/news/marinade-dao-proposes-to-buyback-and-burn-up-to-500m-mnde-redirects-100-of-protocol-fees-to-community-treasury)