Magic Eden's new buyback policy may only allow for the repurchase of approximately $20,000 worth of ME tokens per month.
TL;DR
Magic Eden's new policy allocates 15% of revenue to its ME token ecosystem, with half for buybacks. Based on recent revenue, this equates to only about $20,000 per month for token repurchases.
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According to data from nftpulse, Magic Eden's transaction volume over the past 30 days was $12.8 million, accounting for 9.1% of the NFT transaction market share. The platform's total revenue over the 30 days was only $267,000, with Solana Chain transactions accounting for 74% and Bitcoin Network transactions accounting for 25%.
According to CoinGecko data, the Magic Eden platform token is currently priced at $0.253, with a market capitalization of $108 million, a FDV of $253 million, and a 24-hour trading volume of $110 million.
If the NFT market remains active, based on Magic Eden's "15% revenue investment in the ME ecosystem" strategy launched on February 1st, this policy will only require approximately $20,000 per month to repurchase ME tokens.
As previously reported by BlockBeats, Magic Eden announced that starting February 1st, it will directly invest 15% of its revenue into the ME token ecosystem. This revenue will be distributed equally, with 50% used to buy back ME tokens on the open market and 50% distributed to ME stakers in USDC according to their staking weight.