In a move that's got the Solana community buzzing, Marinade Finance's DAO has put forward proposals that could significantly shake up the $MNDE token economy. Shared via a tweet from SolanaFloor, this news highlights a shift towards greater community control and token scarcity. Let's break it down step by step, explaining the key elements and what they mean for holders and stakers.
The Core of the Proposal
Marinade Finance, one of Solana's pioneering staking platforms, is known for its liquid staking solution that lets users stake SOL while keeping their assets liquid through mSOL tokens. The platform automatically delegates stakes to over 100 high-performing validators, reducing centralization risks and enhancing network security.
The recent DAO proposals—MIP-11, MIP-13, and MIP-14—aim to realign incentives. MIP-11, already approved, redirects 100% of protocol fees straight to the DAO treasury. Previously, some fees went to the team, but now it's all community-owned. This treasury will fund ongoing development, marketing, and other initiatives voted on by $MNDE holders.
Building on that, MIP-13 sets up a mechanism where half of those fees go towards open-market buybacks of $MNDE. Estimates suggest this could total around $5 million annually, with buybacks happening monthly in a transparent way. All transactions will be public, ensuring accountability.
Then there's MIP-14, which proposes burning between 20% to 50% of the total $MNDE supply—that's 200 million to 500 million tokens gone forever. With a current total supply of 1 billion, this could slash it down to 500-700 million, creating deflationary pressure that might drive up the token's value over time.
For context, token burns reduce circulating supply, often leading to price appreciation if demand stays steady or grows. We've seen this play out with other projects like OKX's $OKB, which jumped 193% after a similar burn.
Community Reactions and Buzz
The tweet from @SolanaFloor quickly garnered attention, with likes, reposts, and replies pouring in. Users like @MarinadeFinance chimed in with "MNDE is changing forever," signaling big shifts ahead.
Positive vibes dominated, with @smsonx posting "Chefs on top! Bullish!" alongside a fun image of a bull donning a chef's hat— a classic meme nod to cooking up gains in a bullish market.
Others, like @Crouserrr, called it a "huge W" for the chefs at Marinade, while @NoBanksNearby noted the treasury leveling up, complete with a surreal image of an astronaut in a vibrant room, perhaps metaphorically exploring new frontiers in DeFi.
Not all feedback was purely enthusiastic; @SAG3_ai raised concerns about underlying issues like validator centralization, calling it "governance theater." But overall, the sentiment leans optimistic, with users speculating on long-term value boosts.
What's Next for $MNDE and Marinade?
Looking ahead, Marinade plans to roll out the Active Staking Rewards (ASR) program in 2025, distributing 25 million $MNDE to active governance participants. This encourages voting and holding, strengthening the DAO's decision-making process.
The platform's recent achievements add weight to these proposals. They've crossed $10 million in cumulative revenue, partnered with BitGo for institutional staking, and positioned themselves as the go-to for Solana staking ETFs.
Currently, $MNDE trades at about $0.01174 with a market cap of $51 million and a fully diluted value of $117 million. A 50% burn could halve that FDV to around $58.5 million, potentially making it more attractive to investors.
This aligns with broader trends in Solana DAOs, like Jito and Orca, who are also funneling fees back to communities and implementing buybacks. For blockchain practitioners, it's a reminder of how governance tokens like $MNDE can evolve from mere utilities to value-accruing assets.
If you're staking on Solana or holding $MNDE, keep an eye on the upcoming votes on Realms. These changes could redefine how protocol revenues empower communities, making Marinade a standout in the DeFi space.
For more details, check out the full article on SolanaFloor.