Proposal #5: Monthly Burn Change
With the passing of Proposal #4: Storm of Value Rewards Expansion, we need to limit the monthly burn mechanism. While the current monthly burn mechanism won't be an issue in the present, with the expansion of pooling incentives it will prove to be a supply issue many years from now. The daily rewards structure is now uncapped in rewarded tiers attainable, along with new project/asset involvement creating an ever expanding ecosystem. If monthly burn amounts equal the total amounts pooled in eligible monthly rewarded tiers along with halving TREAD and LFI supply every 4 years, we will be low on supply far before the 2080 burn structure runs it's course. And when supply runs out, so do rewards.
Therefore I propose the following changes to TREAD & LFI Hyper Deflationary Burn Structure:
Proposed Removal:
- 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.
Proposed Addition:
- TREAD & LFI will be burned monthly on the 1st of every month, in accordance with the total amount of TREAD & LFI rewarded per month.
What doesn't change:
- 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.
By limiting the monthly supply burns to match the total TREAD & LFI rewarded per month, instead of the total average amount of TREAD & LFI pooled in monthly rewarded tiers, we will head off the supply issues the current monthly burn structure will cause years from now. While we don't want to do away with the monthly burn completely, as it's very attractive to investors, we do need to be responsible and proactive about future supply issues. Changing the current monthly burn structure to match total TREAD & LFI rewarded will mean the monthly burn will grow with the rewarded tiers. Meaning the monthly burn will still incentivize investors to build into ever higher pool tiers to burn more supply. Making TREAD & LFI more limited in the process.
Proposal #5: Monthly Burn change can be voted on the poll at https://t.me/libertycryptosyndicate/246432 and will run until 00:00 UTC February 9th 2025.
Proposal Outcome: PASSED with 86% FOR and 14% AGAINST.
For comments or questions regarding Proposal #5: Monthly Burn Change or any other inquiries, please visit our group at https://t.me/libertycryptosyndicate
