> For the complete documentation index, see [llms.txt](https://kayen-finance.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://kayen-finance.gitbook.io/docs/protocol-mechanics/community-token-pepper.md).

# Community Token: PEPPER

## The $PEPPER Token

$PEPPER is a community token. It serves as a core component of the Kayen Finance ecosystem, designed to facilitate community-driven ownership and align the protocol's growth with its most active users.

Learn more about PEPPER here:

{% embed url="<https://www.peppercoin.com/>" %}

## Protocol Buyback Mechanism

KayenFi has implemented a daily buyback mechanism funded directly from on-chain activity.

* **Funding:** \
  x% of all protocol earnings are allocated to the buyback program.
* **Execution:** \
  These buybacks are conducted daily at a randomized time. This approach is intentionally designed to ensure fairness and prevent market participants from leveraging the timing of the transactions.
* **Transparency:** \
  To maintain full transparency with our community, each completed buyback is announced on our official X and Discord channels.

## Buyback Methodology

Kayen Finance will operate a dedicated Pepper Buyback DAO. This is an independent DAO, fully separate from Pepper's Main DAO. However, the Main Pepper DAO retains overarching authority over the Sub-DAO's key governance functions.

Our approach prioritizes decentralization, transparency, and auditability in the buyback process.

## Buyback Sub-DAO Permissions

The Buyback Sub-DAO operates under two distinct permission levels:

* **Main DAO Authority:** \
  The Pepper Main DAO holds the highest level of control and can enforce any decision it deems necessary over the Sub-DAO.
* **Kayen Finance Bot Multisig:** \
  This permission is exclusively scoped to execute buyback transactions. It can only send transactions that purchase Pepper. No other transaction types are permitted.