1-personally I think that burning the cash is a bad thing, it could be used to help ASTAR during its crowdloans on Polkadot for example; either a DeFi DOT loan mechanism or a DOT Spot purchase. This is an interesting strategic idea for communication and the development of a cross community.
2- is an excellent thing if the treasure is sufficient, and easier to understand.
Generally speaking, I strongly think this is the best place to set proposals like that, giving more utility to Shiden as a canary network that will be used for experimental strategies.
1. Treasury
I belive in a hybrid approach to make interesting use of the treasury that is actually quite consequent and keeps growing. The funds could be split in 3 different parts
→ For the moment, I am voting no for a full burn
2. Burn of transaction fees
The idea is interesting to mitigate inflation also, even if fees are ridiculously low compared to Ethereum, but we have seen significant good network effect of EIP1559 recently. We just have to study how to keep a correct incentivize of the Collators on the long term.
I personally think that tokens burn at this project early stage is not good idea. As project is only trying to find right place in the ecosystem it would be better to spend these treasury tokens for Marketing, Incentive programs, dApp staking popularization (e.g. increasing APY). Also could it be used for Astar auction on polkadot?
Regarding burning transaction fees, I also think that first need to increase number of transactions and only when we have huge numbers we can think about burning some % of fees.
Yes this is what we are considering. We may increase or decrease the staking revenue by using the treasury. One thing I wanna make sure is that what we are discussing here is whether we will burn today’s amount or not.
After reading other’s input especially Maarten and bLd, I agree with them.
If the result is good, we could implement this to Astar after we win the slot.
For Sota’s idea, I’m still agree with current treasury burn, maybe you could proposed how many percentage from the total current treasury?
By the way I both agree to burn option 1 and option 2. And also speaking of burning and reducing token why we don’t make astar 10m supply in its first circulation. We already tested in shiden having much bigger supply it will not attract investor. 10 million is a good starting supply.
At this early stage, it might be better to use some parts of the funds for marketing, education to explain the importance of Shiden as one of the networks. I think burning is good but we should use some education for creating a ripple effect for Shiden
I agree with bld and Maarten.
For 1, we shouldn’t burn all of it. Instead, the funds could be used to incentive new users or to reward our supporters.
For 2, I agree to burn a % of the transaction fees.
use for growth. Keep the treasury. There are many examples in crypto whereby the funds can be used for monumental growth of the ecosystem - terra is a great example
burn a % of each transaction is an awesome idea. Considering a large part of transactions is farming-related at the start, there will be a stream of support for SDN from the beginning, which encourages more users and more builders. As for the token, this will be helpful for the price, which kicks into a feedback loop of growing earnings for the treasury, to deploy as grants for more builders and so on into a positive feedback loop.
Since the vote is ended, we are going to burn 367,237.728 SDN soon.
However, we still have some topics that need to be discussed. Like burning the transaction fees and how to use the future treasury. Let’s make a separate topic where we can discuss.