- Anchor uses surplus yield to buy back ANC tokens. These tokens are then distributed to stakers
- Mirror uses fees from minting to buy back MIR tokens. These tokens are then distributed to stakers
By buying back tokens and then distributing 100% of the bought tokens back to stakers, these protocols are simply creating ephemeral buying pressure without permanently accruing any value to the underlying tokens.
My proposal would be to return maybe 75% to stakers, and burn the remaining 25%.
This would cause both tokens to become deflationary in nature and permanently increase the value of the underlying tokens.