The current system works as intended: more COW is being bought back than paid out as solver rewards, which reduces the free float. This is similar to a stock buyback program instead of paying dividends. That means if the protocol is net positive in revenue it already SHARES that $ with $COW holders without any tax complications and staking mechanics needed!
With 180M COW unlocked to fund the next five years of the Cow DAO budget, we could even consider introducing a token burn strategy. If buybacks continue to be positive, the excess COW could be burned directly.
@obodur If you don’t understand the basic concept of revenue strategies like token/share buybacks, you probably shouldn’t be dealing with crypto in the first place.
The more COW held in the treasury, the more valuable each holder’s share becomes, since governance rights give you a say in what happens with those treasury tokens. For example, if 100M COW is removed from circulation and placed in the treasury, and we vote to burn it, your holdings would represent a larger percentage of the market cap, effectively increasing your share of value.
This kind of healthy tokenomics is extremely rare in crypto. There’s no reason to implement short-sighted stablecoin conversions—especially since solvers may prefer to hold COW themselves. Weakening the native token by converting it to stables makes little sense. We could start from 20% of excessive COW buyback burn. Easy to implement in the contract.
The worst what can be done is to let some crypto amateurs bend cow’s longerm strategy for short term gains (in their opinion, cause in reality what is being proposed is less healthy for the price than current system which works and it is AMAZING to see COW buyback bigger than solver rewards.) Also the original OPs proposal has many misconceptions and OP clearly shows ignorance and lack of understanding how the system works.. But gladly that was well explained by @notsoformal which I am thankful for. COW token buyback - An update on 1 year of execution