Adding buy back for PNG

Good day,
I’ve given some thoughts about what PNG tokens represent and apart from being a governance token it is also the token of an exchange. So it should reflect somehow the success of the exchange. How do we do that?
Mirroring how central exchange do that: implementing a buy back and burn function as central exchanges like FTX do (look how successful is FTT).
The main question though is where to get the money to buy back PNG and I think a good option would be to reduce the fee paid to LP providers from 3% to 2.5% and use that 0.5% for the buy back.

Please comment, like and if you have a better idea for implementing the buy back do not hesitate to propose it.

Many thanks,
Muh

5 Likes

I don’t agree, bacause basically you are taking away reward from liquidity providers and giving it to PNG holders. We need more liquidity and less speculation here, so it’s an absolute nono for me.

2 Likes

I wrote this in my first proposal:

Activate the 0.05% to buy PNG at the market rate and burn 0.02% of the tokens (even if I don’t really agree with this), this way the community side that likes the idea of burning the PNGs will be happy, use at least 0.005% to donate to help and save Pangolins, I really like SEQ idea, this can be a good marketing move.

I noticed that a small percent of people don’t really want to provide liquidity, they are buying the tokens waiting for a good opportunity, how about creating a “Stake section” where these investors can lock their PNG for 1 month/year and earn PNGs.

We can use the remaining 0.025% from the trading fees to buy PNG.

0.025% for Staking
0.02% to Burn
0.005% to donate to help and save Pangolins

4 Likes

That buy back would be a tiny amount at the current PNG reward schedule and total swap volume.
Current swap volume is $20 million. 0.05% of that is $10.000. That will be a buy back and burn of 2000-4000 PNG out of 175000 PNG daily rewards. It will do next to nothing for PNG price.
The best way to create value for PNG is to grow the exchange and attract liquidity providers, not by chasing them away by giving too small a fee. Don’t forget that AVAX holders can also just stake in the AVAX blockchain which is what I would do if the rewards become too small. Much lower risk and less hassle.

2 Likes

Right now it won’t do anything, but it’s a long term play. Uniswap do almost a billion of volume per week I think…it’s a way to reflect the value on the exchange to its supporters

Uniswap still pay out 0.3% to liquidity providers.

Instead of reducing the reward of LPers, staking PNG for PNG pools should be established. We should even initiate other single coin staking pools where miners need PNG to mine. This is one of the most successful features of Pancakeswap.

3 Likes

Agree. We need some buybacks / buy side pressure from the protocol.

1 Like

This is being discussed. We need to start encouraging buying pressure to offset the selling pressure

1 Like