# MIP-013: Fee Buyback Mechanism

**URL:** <https://community.maple.finance/t/mip-013-fee-buyback-mechanism/355>\
**Category:** Proposal Forum\
**Created:** [January 13, 2025, 7:43pm UTC](https://community.maple.finance/t/mip-013-fee-buyback-mechanism/355 "2025-01-13T19:43:26Z")\
**Posts on this page:** 1\
**Showing post:** 2

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**Author:** ![bellonoff](https://yyz2.discourse-cdn.com/flex036/user_avatar/community.maple.finance/bellonoff/32/98_2.png) [@bellonoff](https://community.maple.finance/u/bellonoff)\
**Post date:** [January 15, 2025, 11:04am UTC](https://community.maple.finance/t/mip-013-fee-buyback-mechanism/355/2 "2025-01-15T11:04:44Z")

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Agree with the buyback to stakers approach, that buys SYRUP selling pressure from drips incentives and distributes it to long term SYRUP holders (stakers).

On the starting buyback percentage, a (conservative) ~$5M ARR for 2025 would still be below ~$6M Maple Labs expenses, resulting in the need to sell ~$1M worth of SYRUP from the inflation allocation to protocol treasury. If 20% of ARR is distributed to stakers, the amount to sell goes up to ~$2M worth of SYRUP.

So looks like distributing before breakeven is going to result in increased SYRUP selling pressure, unless:

1. ARR for 2025 ends up being above Maple Labs expenses (at least) by the buyback percentage, so ~$7.5M for ~$6M expenses.
2. Any shortfall between ARR and expenses is covered by Maple Labs fiat funding or paid in SYRUP to team member that are likely to hold.

Attach some rough numbers below.

 ![Screenshot 2025-01-15 at 12.01.51](https://canada1.discourse-cdn.com/flex036/uploads/maple/original/1X/54cf946e5f328c6304095b6ac65d2b6c2803bb82.png)

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