TREAD & LFI Hyper Deflationary Burn Proposal
From now until Nov 10th (0:00 UTC) we will be hosting a proposal for a hyper deflationary burn mechanism to be applied to both TREAD & LFI from the date of proposal passing till Nov 10th 2080.
While TREAD & LFI have been a resounding success as store of value liquidity layers in the Stellar Lumens network, the one variable lacking in the projects are investor confidence in the overall supplies. While both projects are set to identical 50 billion supplies and mirror the supply of XLM, as the project founder I feel like we can offer more to investors. The missing ingredient is scarcity.
The Storm of Value Rewards structure means supply is released in a responsible fashion to the community. But it also means the resulting effect is inflationary. This needs to be addressed for long term scalability. While the release of the supplies via rewards is a perfect addition, the larger picture of supply and creating a true deflationary structure still needs addressed.
I propose the following as a hyper deflationary burn mechanism:
- Every 4 years (to coincide with the BTC halving year) the supplies of both TREAD & LFI will be burned by half on November 10th.
- Every month, total average supply amounts pooled in TREAD & LFI that meet the monthly minimums for Storm of Value Rewards monthly tiers will be matched in burns on the 1st of every month.
- This burn structure will run until November 10th 2080.
Burn Structure Schedule:
- 2024 = 25 Billion
- 2028 = 12.5 Billion
- 2032 = 6.25 Billion
- 2036 = 3.125 Billion
- 2040 = 1.5625 Billion
- 2044 = 781.25 Million
- 2048 = 390.625 Million
- 2052 = 195.312 Million
- 2056 = 97.656 Million
- 2060 = 48.828 Million
- 2064 = 24.414 Million
- 2068 = 12.207 Million
- 2072 = 6.103 Million
- 2076 = 3.051 Million
- 2080 = 1.525 Million
The burn schedule listed above are at current to date estimates if quantities are halved every 4 years, and do not factor in monthly burns. Those are hypothetical numbers. Regardless of the change in numbers due to monthly burns, every 4 years both supplies will be halved in accordance to what the quantity is on November 10th (Supply %2 & Burn)
The main burns running every 4 years to coincide with BTC halving will be crucial to stoke investor confidence, while the monthly burns will provide extra incentives to pool greater quantities of TREAD & LFI in the Storm of Value Rewards system to further limit overall quantities. Both aspects will work in tandem to create a hyper deflationary system that will provide solid investor confidence in currency. While giving a detailed long term plan that shows we are serious about being a long term asset.
Storm of Value Rewards will remain in place and unchanged. As the projects grow, the supply will be gradually rewarded in interest to the community while the overall supply is decreased. Truly giving the community the power instead of the current system where the overall supply is trust driven and centralized.
As the founder, I'm personally taking no profits, nor will I. The only operational costs we have are to upkeep the rewards system, and to sell fractional amounts of either TREAD or LFI to capitalize on low rates to reinvest in our own project liquidity.
Please visit https://t.me/libertycryptosyndicate with comments or questions, and vote on the burn proposal before 0:00 UTC November 10th 2024 at https://t.me/libertycryptosyndicate/219207
This will be our second project proposal and I'm excited to see the communities voice. Be sure to vote please.
Proposal Outcome: PASSED with 93% FOR and 7% AGAINST.
- TREAD & LFI will be halved in accordance to the total supply in each projects respective liquidity (supply) wallet, every 4 years on Nov 10th, starting Nov 10th 2024.
- TREAD & LFI will be burned monthly on the 1st of every month, in accordance with the total average amount of TREAD & LFI pooled in monthly rewarded tiers.