Baseline Markets Proposes Staking Solution to Prevent Token Dumps
A new approach to compensating contributors without selling tokens has emerged. Instead of paying workers directly in tokens (which typically leads to selling pressure), the proposal suggests:
- **Stake tokens** as collateral
- **Borrow SOL** from liquidity pools against staked position
- **Pay workers** in borrowed SOL instead of native tokens
- **Earn swap fees** continuously on staked collateral
This mechanism, developed by [Baseline Markets](https://baselinemarkets.com), offers infinite duration loans at 0% interest that never require repayment. The borrowed funds are tax-free, while the staked collateral continues generating yield through swap fees.
The system allows token holders to access liquidity without creating sell pressure, while simultaneously earning passive income from their staked position.