| aep | title | author | status | type | category | created | updated | estimated-completion | roadmap |
|---|---|---|---|---|---|---|---|---|---|
55 |
Buy Back and Burn AKT |
Greg Osuri (@gosuri) |
Draft |
Standard |
Economics |
2024-12-07 |
2024-12-07 |
2025-06-30 |
minor |
Credit card transactions in USD are converted to USDC to maintain exact balance equivalence, ensuring a smooth user experience. This approach, however, reduces AKT demand, potentially compromising Akash's security. To mitigate this, a protocol-imposed fee (Take Fee) is applied when using USDC for compute payments. AKT stakers determine this fee through governance proposals.
The collected fee is used to purchase AKT from a DEX like Osmosis. A portion of the acquired AKT is burned, while the remainder is earmarked for future staker distribution, as per AKT 2.0 guidelines.
This system offers advantages to all stakeholders:
- Users benefit from stable, friction-free credit card payments, facilitating adoption among non-crypto users.
- AKT stakers receive a portion of hosting fees, while AKT undergoes continuous burning with increased usage.
- The protocol experiences enhanced usage and adoption due to the stable payment option, attracting a broader user base and driving network growth through increased compute purchases.