Buyback Execution and Internal Profitability

---

💱 Buyback Execution and Internal Profitability

---

To mitigate the inflation generated through profit-based token issuance, Orypton implements a structured buyback mechanism governed by the DAO. When new tokens are minted as part of performance-based rewards, managers can propose repurchasing an equivalent quantity to neutralize inflationary impact. This proposal is then submitted to a DAO vote.

If approved, the system initiates a controlled selling phase, allowing users to sell tokens back into the market. This process naturally exerts temporary downward price pressure, which is counteracted by the marketmaker. The marketmaker executes staggered repurchases across a predefined price range, ensuring an average buyback cost lower than the average user sale price. This strategy both absorbs excess supply and generates internal profit margins—benefiting the fund through arbitrage.

⮕ Transition to Long-Term Sustainability

Once all staking tokens have been unlocked and fully circulated, mint-based staking emissions are phased out to preserve economic balance. At this stage, fund managers begin earning a volume-based fee, such as 0.1% on assets managed or transactions executed. This ensures a sustainable revenue model for long-term operation without relying on continuous inflation.

⮕ Confidential Governance Mechanism

To maintain competitive advantage and strategic secrecy, all investment-related votes are conducted via blind voting within smart contracts. This cryptographic mechanism ensures proposal confidentiality, preventing external entities from tracking or replicating DAO investment strategies.