AADA passive earning program
Summary (TL;DR)
Introducing a passive earning mechanism will give the $AADA token a more sustainable utility. The solution aims to tackle downward pressure that reduces the token retention rate. The overall procedure encompasses the following steps:
1- Create a Governance stake pool.
2- Stake your $AADA in the Governance stake pool
3- Gain Voting power and Passive earning share by the formula (Staked amount x staked days) during a period. (Passive earning from collected fees)
4- Set a period by platform profit $ADA amount by platform activities by DAO voting.
- First buyback and payment will be done once platform profits reach 50.000 $ADA or every epoch depending on how the community decides.
- %10 Developers %45 buy back - %45 incremental for holders according their (amount x staked days) percentage in total.
Introduction
This thread aims to introduce a simplified incentivize the holders’ strategy to the Aada protocol. The latter will tackle $AADA’s price volatility and serve as an incentive for the token holders. Last but not least, it will lay the foundation of the Aada DAO treasury.
Motivation
The initial $AADA token utility was to serve as the centerfold tool of allegiance with the project, as well as participation and improvement of the protocol through DAO voting. However, those features proved too idealistic and insufficient to retain a steady token price.
Aim of this proposal;
- Incentivize holders and encourage new holders.
- To make $AADA token more sustainable
Rationale
To counter the negative price trend and incentivize community members to hold onto the token, the platform will use the locked $ADA in the app’s smart contracts and delegate it to earn rewards.
Ultimately, the feature will help the DAO accumulate wealth while assisting Aada Finance’s native token in maintaining economic stability.
Benefits of the abovementioned strategy:
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Utilizing the $AADA locked in the platform smart contracts in favor of the community.
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Token holders will be incentivized to hold their $AADA and take part in the DAO more actively.
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Token holders will be incentivized to hold their $AADA and receive part of the platform profit.
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This will create buy requests and $AADA will be bought off the market, which will offset excess price volatility.
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The DAO will be able to propose and increase the treasury holdings.
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The DAO will be able to propose and increase/decrease $ADA amount for to set period of time.
