FAAS(Farming as a service) is a new idea in defi that mimics a hedge fund in tradefi. Buys and sells are taxed and the team uses the proceeds to "farm" the crypto world. Profits are returned to the holders either through buybacks and burns or dividends paid directly to holders. When this sector first emerged about 3 months ago I got excited. I thought it was the next big thing. Now I'm not so sure. I don't think anyone has a model that will work. Giving it some thought I've come up with some ideas. This is what I think a faas model that lasts would look like.
1 Reflections go straight to the treasury with maybe a small amount to liquidity. None to holders or marketing.
2 Dividends paid monthly from the treasury in stablecoins.
3 Marketcap is pegged to treasury size 1:1 by sliding taxes. If price gets to high the buy taxes increase dramatically. This would align the marketcap with the treasury size. MC dips below treasury size would be self correcting. The treasury would act as a floor.
4 A portion of the tokens would be set aside(say 20%)for the dev. team/farmers. They would take their profits from dividends like everyone else. These tokens would never be sold on the open market but would change hands when farmers are changed.
5 As long as the farmers are being productive the treasury would act as a steadily increasing floor and the token would become an “up only” token. Eventually the growing treasury size would limit it’s returns(in percentage terms). When this would occur is anyone’s guess. The team(or DAO)would then cap the MC by redirecting reflections to holders.
6 At this point the token would resemble a volatile stablecoin with MC oscillating around the treasury size.