Maple Finance announced a new buyback model after staking.

Maple Finance Ends Staking Program

Maple Finance announced that it has ended its staking program and implemented a token buyback mechanism, embracing an innovative approach in decentralized lending markets. With the new MIP-019 proposal, governance incentives will be offered alongside token buybacks.

Tokenomic Changes and RWA Rise

This change is related to the increasing adoption of real-world assets (RWA) and the growing institutional interest in on-chain lending activities. Maple Finance aims to position itself more securely in the evolving RWA-focused lending ecosystem by limiting token inflation and basing rewards on actual financial performance.

New Governance Model

Maple's MIP-019 proposal introduces a buyback-based model for the SYRUP token by eliminating the staking mechanism. The protocol will use the revenue it generates to buy back SYRUP tokens from the open market. While the previous model distributed inflationary rewards, this new approach aims to make Maple’s tokenomic structure sustainable.

Market Reaction and Institutional Developments

The market responded quickly to these developments. Maple's total value locked (TVL) soared to $3.1 billion by the end of October, reaching its highest level since 2022. Analysts attribute this increase to investors actively playing a role in providing increased institutional liquidity.

Risks and Future Outlook

Analysts note that the changes brought by MIP-019 have been met with strong approval, but they also emphasize the new model's dependence on external credit conditions. Possible declines in RWA yields could negatively impact Maple’s buyback capacity. Additionally, a contraction in institutional borrowing also carries similar risks. Nevertheless, observers consider this governance change an important evolution between DeFi and traditional finance.

In conclusion, this transformation implemented by Maple Finance is not just a tokenomic change; it also stands out as a significant step in the integration process of DeFi with traditional finance. By basing the protocol's value on real-world credit flows, Maple is securing a central position in the RWA-focused on-chain lending revolution.