In this post, I would like to propose burning SDN tokens in 2 ways.
- Burning our treasury which has 367,237.728 SDN at the time of writing. *Keep in mind that we don’t burn the treasury itself
- Burning X% of every transaction fee.
I believe 2 is controversial but 1 is easy. So far, we don’t think of any innovative ways to use our treasury because dApp staking is working. Since deflationary token economics is attractive for new users, burning our treasury can be a good idea. One big reason I would like to try this is that Shiden is a canary network like Kusama. Therefore, I would like to try a lot of things before Astar Network.
Regarding 2, it would be great if we could hear more about the feedback from the community.
I agree to burn 100% of 1.
Also, we can do this vote every month, since we have 40% of the block rewards going to the treasury.
I agree with the second proposal more.
The first one is good to incentives dApp Staking, but I think the funds could be used to help Shiden in another way burning would be wasteful in this case. The second one is for prolonged suppression of supply increase and to cause deflation when possible and it has been proven a success in the ETH eco-system. I like the second one more.
Burn 100% of the treasury in November.
I personally agree with making it deflationary and I am overall decently agnostic to burning of the treasury though it might be novel/useful to tie doing so to a certain milestone amount of SDN contributed to dApp staking.
I agrew with option number 1.
I agree with option 2. I don’t like option 1.
i think let 100% of the treasury be a SDN safefundation good idea;
Agree to burn 2~3% every transaction fee;
I don’t like burning the treasury, I feel like it can be used to incentivize long-term holders in some way. For option 2, yes making it deflationary will only benefit SDN holders and long-term supporters. How much is up to the community. Probably similar to ETH is good rate is good.
1 could be good as a short-term marketing move.
2, I believe will be a good long-term strategy to prevent hyperinflation.
Burning 5%-10% of every transaction fee can, in the longer-term, cancel out the 10% supply inflation especially when Shiden’s traffic grows.
I vote for 2.
I’m strongly against 1, it serves no purpose other than marketing for a small pump short-term and then team has no money to support project. I support 2, it’s better for the long-term will make change.
I prefer if the treasury was used by the DAO when its set up. Let the voters decide what to do down the road.
Option 2 would be great if a small percentage was implemented. .05% is a good starting point and later the DAO can choose to raise, lower or remove it.
Thanks for the great work Sota and team!
Agree on the 100% Burn on option 1)
For option 2, it will be better to start off higher because keep in mind that it will only be a percentage of transaction fees which is already very low to begin with. 5-10% is reasonable and something that could stick and be beneficial for a long time.
I think keeping the treasury fund would be wise, network is young and some use case scenarios will arise
We can start with option 1 and monitor the market and community feedback, to decide about option 2
Why not both … their purpose is totally different. Treasury will not has any meaning in the medium term, because we dont have governance yet to decide what to do with that… so burning is a mandatory.
Burning X% in the second option has to be present too to prevent hyperinflation, in 10 years, the supply will increase a lot and thats not good, ethereum has adopted this feature in recent weeks.
The key here is that we think in the long run not short run what the best for this project, shiden is so important for the future of ASTAR, and for that we need to attract a bigger community as soon as possible to stress the shiden network first.