Add utility and buyback mechanism for increasing demand for MNGO

I think it would be a good idea to further expand the utility of MNGO, and implement a buyback and burn mechanism using some of the profit generated by the platform. While there’s value to a pure governance coin, adding other utility for the token and a buyback and burn mechanism can help achieve a sustained demand for the MNGO tokens.

Making sure people are confident that MNGO’s price does appreciate (or at least not depreciate) over time is important because for example, pragmatically, many people become market makers so they can profit by selling the MNGO they accrued, and the more market makers we can attract, the better the trading experience becomes.

I am just brainstorming some ideas on the top of my head but some of the idea that I can think of includes:

  1. A transaction fee discount where the more MNGO you have in your account, the cheaper your transaction fee is. The transaction fee discount you get could be categorised into tiers, or the discount could increase linearly/quadratically with the amount of MNGO you hold.
  2. MNGO can be directly used for a transaction fee discount, the MNGO used will be burned.
  3. A buyback and burn mechanism periodically using, for example, 30% of the profit the platform generates.

Obviously, what I wrote above is just a simple overview of the ideas I have in mind and the exact details would need to be further discussed but since I see no one talking about the importance of increasing demand for MNGO, I decided to open this thread and see what you guys thoughts are on this!

4 Likes

This proposal makes sense. I don’t understand why many DeFi tokens are governance only. MNGO, dydx, QI and many others. They should be accruing fees (buy and burn).

I’d prefer some sort of staking mechanism and returning some of the profit to staked users.

1 Like

All platform profits are already under control of MNGO through the DAO. Theres hardly any difference in a buy and burn or control of the treasury vault

That makes sense too imo because this adds intrinsic value to the MNGO tokens.

I understand but there’s a difference imo. Purely having control of the treasury vault doesn’t result in any monetary rewards for MNGO holders. However, i think MNGO holder should be rewarded for taking the risk investing in the platform.

Buy and burn using the profit, or the staking for profit @zabu mentioned is a way to add intrinsic value to the MNGO token using the profit generated.
The ideas I mentioned regarding transaction fee discount are also ways to add intrinsic value to the token but without the need of using the profit generated (although it does reduce the revenue for the platform).

1 Like

Think this is a great idea and the natural step for Mango DAO.

However, let’s first get the product in a state where Mango Markets is a go-to destination for people globally to trade perps. It’s just an MVP right now and there’s a few more things.

Maybe by Christmas this makes sense, as the fees start to pour in and constitute a more significant value to accrue to MNGO hodlers.

2 Likes

:+1: :+1: :+1: makes sense to focus on product quality first for now.

1 Like

1000 percent agree with your idea

I generally agree, but I would add that the sooner the buy and burn begins, the more you can burn with x amount of fees (assuming the value of MNGO goes up over time, which is likely an assumption MNGO holders have made).

Though this is a rather obvious point, it can meaningfully change the result of the two methods.

I agree as well. I know the Mango developers are working 12 hr days, typically 7 days/week. Give them time to make this dex the global ‘go-to’ site for margin and derivatives trading. The profits for token holders will come !