# \[EIP #2\] - Monthly Adjustment of vlEGP Reward Distribution to Maintain 50% APR and Fund Automated EGP Buybacks

**URL:** https://gov.magpiexyz.io/t/eip-2-monthly-adjustment-of-vlegp-reward-distribution-to-maintain-50-apr-and-fund-automated-egp-buybacks/718
**Category:** 3. Eigenpie Improvement Proposals
**Created:** [July 25, 2025, 1:55am UTC](https://gov.magpiexyz.io/t/eip-2-monthly-adjustment-of-vlegp-reward-distribution-to-maintain-50-apr-and-fund-automated-egp-buybacks/718 "2025-07-25T01:55:50Z")
**Posts on this page:** 1
**Page:** 1

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### Author: ![Juapia-Magpie](https://avatars.discourse-cdn.com/v4/letter/j/76d3ee/32.png) [@Juapia-Magpie](https://gov.magpiexyz.io/u/Juapia-Magpie)
#### Post date: [July 25, 2025, 1:55am UTC](https://gov.magpiexyz.io/t/eip-2-monthly-adjustment-of-vlegp-reward-distribution-to-maintain-50-apr-and-fund-automated-egp-buybacks/718/1 "2025-07-25T01:55:50Z")

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## **Abstract**

This proposal, driven by community demand, adjusts the reward distribution for vlEGP (locked EGP) to maintain a consistent 50% Annual Percentage Rate (APR) through monthly evaluations. Monthly rewards, distributed in EIGEN, ZRC, and USDT, will be capped at 50% APR. Any rewards exceeding this threshold will be reallocated to an automated EGP buyback program. This initiative aims to deliver predictable and sustainable rewards for vlEGP holders while supporting EGP long-term value by reducing circulating supply through periodic buybacks.

## **Motivation**

The Eigenpie community has expressed a strong desire to support EGP’s price stability while maintaining attractive and sustainable rewards for vlEGP holders.

This proposal addresses these priorities by implementing:

1. Monthly APR Adjustment: Ensuring a consistent 50% APR for vlEGP holders, preventing unsustainable over-incentivization.

2. Excess rewards Reallocation: Redirecting surplus rewards into a buyback fund to purchase EGP tokens and reducing circulating supply.

3. Transparent Buybacks: Scheduled EGP buybacks will be periodically transferred to the Eigenpie Treasury multisig. Users can verify these inflows by checking the Treasury’s wallet address.

This approach strengthens the Eigenpie ecosystem by:

- Providing sustainable and predictable APRs for vlEGP holders.
- Reducing circulating EGP supply to mitigate sell pressure and enhance long-term value.
- Aligning with community demands for a balanced and resilient economic model.

## **Specification**

This EIP #2 will implement the following changes:

1. Monthly APR Adjustment for vlEGP:

2. Reallocation of Excess Rewards:

3. EGP Buyback Program: