Buybacks Mechanism

A clear overview of how STAY tokens are strategically bought back and removed from circulation to ensure long-term value for partners.

The 6-Year Buyback Projection table was meticulously calculated to provide transparency into NFsTay's financial ecosystem and demonstrate the robust mechanisms supporting the value of the STAY token. Below, we detail the methodology used to derive each value, ensuring that potential investors can understand and trust the financial projections. Additionally, we highlight future growth opportunities and conservative assumptions to emphasize the platform's scalability.

1. Primary Fees

Whenever a new property deal is launched, partners enter by contributing capital (on average £12,000 per deal for a 4-bedroom house, covering deposit, rent, refurb, and sourcing fees).

  • A 3% entry fee is charged.

  • That 3% is split equally:

    • 1.5% buys BTC for the Treasury.

    • 1.5% buys STAY, which is then burned.

This means that simply by joining a deal, every partner is helping to increase the scarcity of STAY tokens. Over dozens or hundreds of deals per year, this creates recurring, predictable buy pressure.

2. Secondary Fees

Not every partner wants to hold their position until the lease ends. Some may want to exit early for liquidity. That’s where the secondary marketplace comes in.

  • If a partner sells their shares, a 1.5% fee applies to the deal value.

  • That entire 1.5% goes directly into buying back STAY, which is then burned.

So every time liquidity is created for one partner, it simultaneously creates demand for STAY on the open market, benefitting everyone.

3. Boost Revenue

Boost is where we expect the largest buyback activity. Here’s how it works:

  • A partner with £10,000 in deals can choose to “boost” their earnings.

  • To do so, they pay 12% of their capital (£1,200) upfront — which goes 100% into buying STAY and burning it.

  • In exchange, they receive a 24% bonus return spread over 12 months.

Because the incentive is strong, we conservatively expect 50% of all partners to use Boost on their holdings. That means half of all invested capital is driving 12% worth of buybacks each year. This makes Boost the most aggressive engine for STAY demand.

4. Proposals Creation Fee Buybacks

Partners aren’t passive — they can actively shape property outcomes by submitting proposals (for example: refurbishing a kitchen, repainting a property, or adjusting strategy).

  • To submit a proposal, the partner must pay a $25 fee in STAY tokens.

  • Those tokens are burned permanently.

This ensures that governance activity itself directly fuels STAY scarcity. As the platform scales to hundreds of properties, the number of proposals will grow significantly.

5. Treasury Buyback

The NFsTay Treasury operates with a fixed 90% BTC / 10% STAY allocation.

  • If STAY rises above 10%, the excess is burned.

  • If BTC rises above 90% due to appreciation, a portion of BTC is sold to buy STAY, rebalancing the ratio.

Since Bitcoin’s historical annual average growth is ~30%, we expect this mechanism to be a consistent and powerful driver of STAY buybacks. The stronger BTC performs, the more STAY gets bought and burned.

Treasury Integration:

  1. BTC Upside = STAY Upside: Treasury rebalancing ensures that every BTC bull cycle injects further:

    • STAY tokens purchased by the Treasury are not burned. Instead, they are held as part of the 90% Bitcoin / 10% STAY reserve strategy, bolstering the Treasury’s strength and flexibility.

  2. No Selling of Treasury-Owned STAY:

    • As per the Treasury rules, STAY tokens held by the Treasury are never sold. This means these tokens are effectively removed from circulation, further enhancing their scarcity.

  3. Vital Source of Buying Pressure:

    • The Treasury’s regular buybacks of STAY tokens from the market create a significant and ongoing source of buying pressure, driving demand for the token and contributing to its long-term value appreciation.

Key Benefits of the Updated Strategy:

  1. Sustained Scarcity:

    • Buybacks of STAY tokens from marketplace fees, booster fees, and proposal fees, ensures a constant reduction in the circulating supply.

  2. Treasury-Driven Demand:

    • The Treasury’s rule to buy but never sell STAY tokens effectively removes these tokens from circulation, creating a powerful mechanism for driving demand and scarcity.

  3. Aligned Growth:

    • The combined effects of the Incinerator and the Treasury strengthen the protocol’s tokenomics, aligning incentives for token holders and the ecosystem’s long-term growth.

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