Abstract
This proposal recommends that the DAO pause its current MNDE buyback program and instead accumulate mSOL in the treasury. The goal is to enable deeper MNDE/mSOL liquidity across decentralized exchanges. The accumulated mSOL may be deployed to liquidity pools as outlined in MIP-16, helping improve MNDE’s trading experience, slippage profile, and accessibility across Solana DeFi.
Motivation
MIP-11 introduced a mechanism where the DAO used 50% of protocol performance fees (collected in SOL) to perform monthly MNDE buybacks via TWAP orders. These operations have now run for several months.
While this initiative aligned value accrual to MNDE holders, the DAO has identified a higher-priority challenge in the current market: shallow liquidity in MNDE trading pairs. This condition limits capital efficiency, deters integrations, and raises slippage for both buyers and sellers.
Deeper liquidity is a prerequisite for improved MNDE market access. Enhancing liquidity depth is expected to:
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Lower slippage for traders and integrators
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Attract new buyers deterred by thin books
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Support MNDE’s broader utility and adoption across Solana DeFi
Accumulating mSOL rather than converting treasury SOL into MNDE is a necessary first step toward enabling this liquidity.
Proposal
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Pause all MNDE buybacks initiated under MIP-11
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Retain 100% of protocol performance fees (in SOL) in the DAO treasury
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Mint mSOL from these SOL funds as appropriate, enabling deployment into MNDE/mSOL liquidity pools, starting with those defined in MIP-16
This proposal is forward-looking and creates the foundation for improved MNDE market conditions through liquidity-focused deployments.
Implementation Details
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MNDE buybacks will be paused one epoch after proposal approval to ensure sufficient transition time.
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Any outstanding TWAP orders (e.g., placed via Jupiter) will be allowed to execute fully.
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From that point onward, no new MNDE purchases will be made under MIP-11.
Rationale
This is not a reversal of value alignment—it is a strategic shift in how the DAO delivers that value. Liquidity is the critical bottleneck for MNDE’s usability and market presence today. By accumulating mSOL, the DAO gains the flexibility to:
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Seed deeper liquidity in priority markets
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Improve MNDE trading conditions
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Better support long-term demand
The goal is to support deeper MNDE/mSOL liquidity through initiatives such as MIP-16, which is expected to have greater impact on MNDE’s price stability and utility in the current market environment.
Conclusion
MIP-17 proposes a pause on MNDE buybacks and a reallocation of protocol revenues toward strengthening MNDE liquidity. This is a tactical pivot that aligns with evolving priorities and prepares MNDE for more sustainable long-term growth.