# \[DIP\] Derive DAO increase revenue allocation for weekly buybacks

**URL:** <https://forums.derive.xyz/t/dip-derive-dao-increase-revenue-allocation-for-weekly-buybacks/279>\
**Category:** DIP\
**Created:** [May 14, 2025, 10:45am UTC](https://forums.derive.xyz/t/dip-derive-dao-increase-revenue-allocation-for-weekly-buybacks/279 "2025-05-14T10:45:05Z")\
**Posts on this page:** 4\
**Page:** 1

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**Author:** ![AlvaroHK](https://yyz2.discourse-cdn.com/flex030/user_avatar/forums.derive.xyz/alvarohk/32/22_2.png) [@AlvaroHK](https://forums.derive.xyz/u/AlvaroHK)\
**Post date:** [May 14, 2025, 10:45am UTC](https://forums.derive.xyz/t/dip-derive-dao-increase-revenue-allocation-for-weekly-buybacks/279/1 "2025-05-14T10:45:05Z")

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**# Simple Summary**

This proposal seeks to increase the weekly revenue allocation for $DRV token buybacks from 25% to 80%.

**# Abstract**

The objective of this proposal is to authorize the buyback and accumulation of $DRV tokens from the open market. This initiative aims to establish a fair market price for $DRV tokens and safeguard the Derive protocol against potential hostile takeovers exploiting undervaluation.

Reference: [[DIP] DRV Token Launch and Functionality](https://forums.derive.xyz/t/dip-drv-token-launch-and-functionality/233)  
_(25% of protocol revenue will be used for token buy-backs for the DAO treasury.)_

**# Motivation**

Over recent months, Derive has successfully completed its rebranding from Lyra and launched a robust suite of technologies designed to compete with centralized exchanges (CEXs). While the focus has been on developing innovative products, the value and market capitalization of the $DRV token have been secondary priorities. Due to recent market conditions, the token’s price has experienced a downward trend, which does not accurately reflect the protocol’s technological advancements or ecosystem growth.

**# Specification**

- The DAO will allocate 80% of weekly protocol revenue to purchase $DRV tokens from the open market.

**# Rationale**

Increasing the allocation for token buybacks will strengthen the DAO’s token reserves, support a more accurate valuation of the $DRV token, and enhance protection against unsolicited takeovers, thereby ensuring the long-term stability and integrity of the Derive protocol.

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**Author:** ![Ramjo](https://avatars.discourse-cdn.com/v4/letter/r/58956e/32.png) [@Ramjo](https://forums.derive.xyz/u/Ramjo)\
**Post date:** [May 14, 2025, 11:23am UTC](https://forums.derive.xyz/t/dip-derive-dao-increase-revenue-allocation-for-weekly-buybacks/279/2 "2025-05-14T11:23:21Z")

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Could also provide a % to increase token liquidity too

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**Author:** ![AlvaroHK](https://yyz2.discourse-cdn.com/flex030/user_avatar/forums.derive.xyz/alvarohk/32/22_2.png) [@AlvaroHK](https://forums.derive.xyz/u/AlvaroHK)\
**Post date:** [May 14, 2025, 2:58pm UTC](https://forums.derive.xyz/t/dip-derive-dao-increase-revenue-allocation-for-weekly-buybacks/279/3 "2025-05-14T14:58:20Z")

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For token liquidity rewards, the team is allowed to set what they consider. No need voting proposal.

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**Author:** ![Ramjo](https://avatars.discourse-cdn.com/v4/letter/r/58956e/32.png) [@Ramjo](https://forums.derive.xyz/u/Ramjo)\
**Post date:** [May 14, 2025, 7:27pm UTC](https://forums.derive.xyz/t/dip-derive-dao-increase-revenue-allocation-for-weekly-buybacks/279/4 "2025-05-14T19:27:32Z")

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I’m not referring to incentives. I believe it’s more solid if the protocol itself OWNS a certain amount of the liquidity. For example using a certain percentage of revenue to purchase eth to load with the purchased drv. I (not officially) made this comment back when eth was below 2k. Meaning the protocol and or drv token would’ve had gains from eth exposure too