Buybacks Mechanism
Last updated
Last updated
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.
Formula:
Primary Fees=Annual Properties×Average Property Value×Primary Marketplace Fee Rate (2.5%)\text{Primary Fees} = \text{Annual Properties} \times \text{Average Property Value} \times \text{Primary Marketplace Fee Rate (2.5\%)}Primary Fees=Annual Properties×Average Property Value×Primary Marketplace Fee Rate (2.5%)
Explanation: Primary Fees represent the revenue generated from the initial sale of property shares on the NFsTay Marketplace. For every property listed, a 2.5% fee is charged on the property value.
Example for Year 1:
Primary Fees=18×350,000×0.025=157,500\text{Primary Fees} = 18 \times 350,000 \times 0.025 = 157,500Primary Fees=18×350,000×0.025=157,500
Formula:
Secondary Fees=Cumulative Properties on Platform×Average Property Value×Secondary Marketplace Turnover Rate×Secondary Marketplace Fee Rate (1.25%)\text{Secondary Fees} = \text{Cumulative Properties on Platform} \times \text{Average Property Value} \times \text{Secondary Marketplace Turnover Rate} \times \text{Secondary Marketplace Fee Rate (1.25\%)}Secondary Fees=Cumulative Properties on Platform×Average Property Value×Secondary Marketplace Turnover Rate×Secondary Marketplace Fee Rate (1.25%)
Explanation: Secondary Fees are generated from the trading of previously sold property shares on the secondary marketplace. The turnover rate starts at 5% in Year 1 and increases by 1% annually, reflecting the growing activity on the platform. The fee rate applied to this turnover is 1.25%.
Example for Year 3:
Cumulative Properties=18+24+32=74\text{Cumulative Properties} = 18 + 24 + 32 = 74Cumulative Properties=18+24+32=74 Secondary Fees=74×350,000×0.07×0.0125=9,065\text{Secondary Fees} = 74 \times 350,000 \times 0.07 \times 0.0125 = 9,065Secondary Fees=74×350,000×0.07×0.0125=9,065
Formula:
Boost Revenue=Annual Properties×Average Property Value×Adoption Rate (40%)×Boost Fee Rate (2.5%)\text{Boost Revenue} = \text{Annual Properties} \times \text{Average Property Value} \times \text{Adoption Rate (40\%)} \times \text{Boost Fee Rate (2.5\%)}Boost Revenue=Annual Properties×Average Property Value×Adoption Rate (40%)×Boost Fee Rate (2.5%)
Explanation: Boost Revenue is generated from the optional Boost Program, where investors pay a fee of 2.5% to increase their returns by 5% for a year. It assumes a 40% adoption rate among investors.
Example for Year 1:
Boost Revenue=18×350,000×0.4×0.025=63,000\text{Boost Revenue} = 18 \times 350,000 \times 0.4 \times 0.025 = 63,000Boost Revenue=18×350,000×0.4×0.025=63,000
Formula:
Total Fees Generated=Primary Fees+Secondary Fees+Boost Revenue\text{Total Fees Generated} = \text{Primary Fees} + \text{Secondary Fees} + \text{Boost Revenue}Total Fees Generated=Primary Fees+Secondary Fees+Boost Revenue
Explanation: This value combines all revenue streams (Primary Fees, Secondary Fees, and Boost Revenue) to give the total amount of fees collected in a given year.
Example for Year 1:
Total Fees Generated=157,500+3,937.50+63,000=224,437.50\text{Total Fees Generated} = 157,500 + 3,937.50 + 63,000 = 224,437.50Total Fees Generated=157,500+3,937.50+63,000=224,437.50
Formula:
Treasury Buyback=Annual Properties×Average Property Value×Treasury Contribution Rate (10%)×Buyback Rate (10%)\text{Treasury Buyback} = \text{Annual Properties} \times \text{Average Property Value} \times \text{Treasury Contribution Rate (10\%)} \times \text{Buyback Rate (10\%)}Treasury Buyback=Annual Properties×Average Property Value×Treasury Contribution Rate (10%)×Buyback Rate (10%)
Explanation: The Treasury allocates 10% of the total property value raised each year, and 10% of this allocation is used to buy back STAY tokens. These tokens are retained in the Treasury and are not sold, ensuring they remain out of circulation.
Example for Year 1:
Treasury Buyback=18×350,000×0.1×0.1=63,000\text{Treasury Buyback} = 18 \times 350,000 \times 0.1 \times 0.1 = 63,000Treasury Buyback=18×350,000×0.1×0.1=63,000
Formula:
Total Buyback=Total Fees Generated+Treasury Buyback\text{Total Buyback} = \text{Total Fees Generated} + \text{Treasury Buyback}Total Buyback=Total Fees Generated+Treasury Buyback
Explanation: This value reflects the total buying pressure on the STAY token from all revenue sources. It includes both fees burned through the Incinerator and buybacks made by the Treasury.
Example for Year 1:
Total Buyback=224,437.50+63,000=287,437.50\text{Total Buyback} = 224,437.50 + 63,000 = 287,437.50Total Buyback=224,437.50+63,000=287,437.50
Average Property Value: The table assumes an average property value of $350,000 across all years. While this is a realistic starting point, larger deals, such as entire building developments, could significantly increase yearly property values and fees.
Number of Properties: The year-on-year increase in the number of properties assumes steady platform growth, with NFsTay initially listing properties and gradually allowing third-party sellers to utilize the marketplace. This approach justifies the scaling numbers and demonstrates the platform's growth potential.
Treasury Integration:
No Burning of Treasury-Owned STAY:
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.
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.
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.
Sustained Scarcity:
By burning STAY tokens from marketplace fees, booster fees, and proposal fees, the Incinerator ensures a constant reduction in the circulating supply.
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.
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.
