Nostra Governance Proposal: Buyback and Burn Program for $NSTR

Thank you to my friends Amilfster and MJ2022 for helping me write this PROPOSAL.

I am a big believer in the Nostra team and what they are building. I suggest adding a buyback and burn program for $NSTR using all of Nostra’s revenue. The idea is to make $NSTR more valuable for holders by using 100% of last quarter’s revenue to buy $NSTR from the market and burn it forever. With fewer tokens in circulation, scarcity increases, which can make the token more valuable and build trust in Nostra.

Motivation:
Nostra earned $466,426.49 from Q3 2024, showing big growth. With a fully diluted valuation (FDV) of $6M and yearly revenue close to $2M, it’s important to reward token holders and create long-term value. A buyback and burn program will make sure there are fewer tokens, which increases scarcity and potentially drives up the price of $NSTR.

Proposed Change:

  • Revenue Allocation:
    100% of Q3 revenue will be used to buy $NSTR from the open market during Q4.
  • Buyback Schedule:
    Purchases will be made gradually across the next quarter to avoid affecting the market too much.
  • Burn Mechanism:
    All purchased $NSTR will be permanently burned by sending it to a designated burn address, which reduces the supply.
  • Burn Tracker:
    A public tracker will be set up to show all burns in real-time, ensuring full transparency.

Key Benefits:

  • Supply Reduction:
    Burning $NSTR means there will be less supply, which can lead to a higher price.
  • Market Support:
    Regular buybacks increase demand for $NSTR, supporting the price.
  • Community Trust:
    Implementing a buyback and burn program rewards token holders and makes them believe in $NSTR long-term.
  • Revenue Growth:
    As Nostra grows to more chains like Monad, buyback and burn programs can be scaled to keep adding value to the tokens.

Next Steps:

The community will engage, give feedback, and help make this proposal better. Once finalized, the proposal will be submitted for a governance vote.

Call to Action:
I ask all $NSTR holders to discuss, refine, and support this initiative to boost $NSTR’s potential.

13 Likes

Great proposal. But for now as an NSTR holder, I disagree with the idea of spending 100% of revenue on token burns. I believe it would be more beneficial for them to focus on developing new and improved tools for Nostra.

The integration with Monad should attract significant liquidity and increase the value of the NSTR token.

In the future, I would support token burns, but for now, I think it’s better for them to invest in salaries and innovation.

6 Likes

thanks Enzo. However, I feel the team and all NSTR token holders can benefit from this as this leads to long term growth for both Nostra and the token (and token holders’ portfolio)

Also if you read their latest proposal they are planning to increase liquidity for NSTR and bringing it all in one chain, i.e. Starknet.

we are discussing buyback and burn for NSTR and now the team is increasing liquidity on Starknet?

Looks like buyback and burn is imminent. The only question remains how much % of the quarterly revenue should be used for it. If 100% if too much, we can think of other proportions, what about 50%?

4 Likes

I think looks good, but it too mutch. I think 10% from profit more prefer to buy NSTR and burn it.

3 Likes

Very good Idea! Let’s do this!
Token support from developers, that’s a big deal. And besides, it turns out that you as a project earn money, while investors sit in drawdown. That’s not cool.

2 Likes

I support allocating the majority of Q3 revenue to the Buyback and Burn Program as it can simultaneously enhance the value of the DAO Treasury and return profits to $NSTR holders. However, due to low liquidity, I recommend setting a purchase price for the buyback and executing it through limit orders.

1 Like

Hey! Thanks for the proposal!

I agree that profit-sharing is the direction most DAOs will, and should, take.

However, since Nostra is still in its early stages, allocating 100% of profits to a buyback program doesn’t seem like the wisest approach. Imho at this point, the buyback program could serve only as a symbolic gesture of commitment to profit-sharing, and for that, 10% should suffice.

That said, I think the bigger question here is how this proposal could be implemented given that 100% of protocol revenue currently goes to Nostra Labs (as outlined here: Elect Nostra Labs as the service contractor of the Nostra DAO for the next year). Are you essentially proposing to override that decision?

It would be great to hear from Nostra Labs on this. From a governance perspective, do you think this proposal, if passed, would redirect Nostra’s profits to the buyback program, or would the DAO need to remove Nostra Labs as the service provider first?

3 Likes

Unfortunately, that’s impossible because Nostra DAO (:D) accepted that Nostra Labs proposal before. So if yearly revenue is under $2.5m Nostra DAO treasury will earn nothing and all of the revenue will go to Nostra Labs for maintenance services.

I have doubts about the proposal because nearly 60% of votes came from one address which is here: 0x029e69643cf5ce92aba3d262fbda1f6375379f152a8b22e5b10c6d2d383ce768

You’re a great holder for the project but the revenue goes to the team besides tokens sadly.

2 Likes

Idea is good but under 20% revenue to buy back is better as we have many things to develop not just token value

2 Likes

Hello, Team Nostra.
It might be worth spending some money on advertising and marketing, paying for a listing on CEX, hiring a good market maker.
I would also like to see more partnerships with LRT staking, I want their audience to come to you. And in general you don’t announce partnerships at all.
But buying from the market is also a good idea, I think 50% of the initial amount. + you can buy regularly, for example in the first 2 years. This way you will show that the campaign brews in itself and invests in itself. You will accumulate a lot of tokens, earn money and you can use them for reward campaigns.

Other ecosystem do the same, even Binance do this, so we must to do this too

1 Like

If there is going to be a token burning program, it would be better for the token burning to be continuous, either monthly or quarterly. However, there are better ways to use protocol revenue, such as incentives in new networks like Monad, Eclipse, MegaETH, and others. This approach would increase the protocol’s revenue, the number of holders, and market share.

1 Like

I’m down.
How much would be deducted from the max supply?
Can you do the math?
Also, the price of the NSTR should be valued by the intrinsic value of it.
The NSTR we hold right now doesn’t give us any reward or has no value. It doesn’t represent any Vault or Anything of value.
Create a vault and implement a mechanism for accumulating BTC, ETH, STRK, and NSTR. (Buying NSTR for the vault is similar to Burning .)
So when we want to sell it, there will be a minimum price for what we hold.

2 Likes

seems good, it will have a reason to hold nstr token

1 Like

Token burning has shown that it doesn’t have the effect people believe it does because, in the crypto market, most of the world’s economic guidebooks won’t apply here since tokens lack intrinsic value. Therefore, reducing the supply won’t lead to a price increase; it’s more like subtracting nothing from nothing.

2 Likes