I'd like to write a bit about this topic, because I think it's worth considering, but I also think the issue goes a bit deeper. Most of the buybacks currently come from liquidity pools, like sushiswap or uniswap. Those two pools do not have a ton of pickles in them. Sushi's LP has 27,463 and Uniswap's LP has 145,823. Together, that's 173,287, which is not a small number. However, when you're buying back 8700+ pickles a week, that supply is exhausted in 16 weeks, four months.

Obviously, Pickle's token price will not stay where it is, and so the supply won't exhaust itself in four short months. The price will go up, and the LPs will adjust their ratios appropriately. However, if Pickle continues to execute their buybacks on these swap pools, Pickle NEEDS those LPs to be filled in order to pay a fair price for their buybacks.

Similarly, dill stakers would very much like an off-ramp that doesn't involve racing to liquidate their weekly payouts every Thursday before the price tanks. As the project matures, there will be some pressure every Thursday for holders to sell their pickle before others do, to capture the most of the dividends that they can. Larger holders might even feel guilty about doing this, either because they are hurting the project with excessive volatility, or because they literally feel compelled to race against their team members to liquidate so as to get the best price.

Increasing rewards for funding the liquidity pool is a very nice solution to both of these problems. A well-stocked liquidity pool will ensure that the pickle project does not overpay in their buybacks due to low-liquidity. It also ensures that dill holders can slowly sell out of their pickle position as the price of the token rises. (As an explanation here, funding a liquidity pool effectively buys the dip and sells the pop. If we expect Pickle price to continue to go up, funding the LP is effectively a slow-motion sale of your pickles for ethereum, ie, selling your rewards slowly.)

Basically, rewarding funding the LP ensures that dill holders who want to cash out can do so slowly, over time, and as part of the LP, which also helps maintain price stability, ensures the project doesn't overpay for buybacks, removes the guilt of racing to sell out before everyone else every Thursday, and IMO provides a much healthier Pickle ecosystem.

In short, I'd suggest incentivizing funding the LPs; It is both a great offramp for scaling out of part of your rewards and also a service for the project to avoid huge volatility and price imbalances. This can build a much better ecosystem for pickle holders.

Higher yield, auto compounding sushi would give us another jar for dill to earn more revenue too!