Solana’s Marinade Finance Plans to Buyback MNDE with 50% of Revenue

Marinade Finance, a liquid staking protocol on Solana, has unveiled a proposal to allocate 50% of its protocol performance fees to monthly buybacks of its native governance token, MNDE.

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Marinade DAO will soon use 50% of all protocol fees to buyback $MNDE on the open market.

This marks a new era where all fees flow to the community treasury, as approved in MIP-11.

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— Marinade 🛡️ (@MarinadeFinance) August 15, 2025

The treasury program was introduced in MIP‑11 and will be finalized in MIP‑13. Back in June, MIP-11 set the groundwork by directing 40% of Stake Auction Marketplace (SAM) performance fees to MNDE buybacks. This is about 3.8% of total protocol revenue at the time. SAM was created to allow validators to bid for stakes, guarantee an annual percentage yield (APY), and take yields above the market standard. The MIP-13 proposal takes it further, raising the allocation to 50% of all protocol performance fees.

Marinade’s 50% Buyback Proposal

Marinade will purchase MNDE on open markets via decentralized exchanges (DEXs) like Jupiter or Orca. All buybacks will be executed through decentralized autonomous organization (DAO) tools and disclosed monthly. This approach provides complete transparency and enables community oversight.

Notably, the tokens will not be burned; instead, they will be held in the DAO treasury. This provides flexibility for future use, such as grants or governance incentives. The protocol noted that this move isn’t a typical price-support mechanism. Instead, it’s a treasury policy designed to create a sustainable and rules-based method for accumulating MNDE over time using real protocol revenue. This approach aims to avoid token issuance or dilution.

“Rather than prescribing any specific outcome, the buyback mechanism gives the DAO the option to use MNDE for grants, contributor incentives, governance incentives, or other use cases as determined by future proposals,” Marinade Finance stated.

Active Staking Rewards (ASR)

Alongside the buyback mechanism, MIP-13 introduces an “Active Staking Rewards” (ASR) program. It will distribute 25 million MNDE tokens throughout 2025 to incentivize voter engagement in DAO governance.

MIP-13 is slated to go live on Realms soon. If approved, monthly MNDE buybacks begin around September 2025. The proposal aims to align incentives for non-validator MNDE holders better, strengthening their overall value proposition. It will also create consistent buy pressure and add governance utility through the Active Staking Rewards program.

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