OGN DAO has announced that it plans to buy back OGN tokens from the market using more than $3 million in DAO Treasury assets.
The new management proposals, including the plan, were unanimously accepted by the community, according to the statement.
The move illustrates a significant change in the value transfer mechanism of the origin token ecosystem, following the previously approved proposal to “direct 100% of the protocol's revenues towards OGN buybacks.”
To provide sustainable returns to token holders, DAO is moving to a model where token supply has stopped and instead is supported by protocol revenue and actual returns from DAO assets.
Over $3 million (at the time of writing) from assets from the DAO Treasury will be used for the next 12 months. These assets are primarily converted to OUSD or OETH, which are Origin's own assets. This structure is intended to support regular buybacks while maintaining the possibility of appreciation from the Ministry of Finance.
Following development, OGN prices rose by around 7% in a short time, but later retreated.
*This is not investment advice.
