@wintermute
How about the elegant solution proposed here:
TL;DR: Buybacks get in the way of issuance and the ability to re-invest in the protocol. Excellent way to redistribute value to shareholders, but poor for the protocol long-term.
Instead of burning, use an imbalanced Balancer-style liquidity pool, stacked to be bullish on your platform token. eg, weighted 90/10 UNI/ETH.
Deposit profits in ETH; this drives the price up just like a burn model.
Bonus of making UNI/ETH a more liquid pair without having to issue additional UNI, and of compounding the treasury via the pool fees.
Obviously, Uniswap only currently allows for 50/50 pools on its own platform, and it wouldn’t really do to house our treasury on Balancer… but this looks like the simple and elegant solution we’re looking for.
Thoughts?