Governance On Burning Treasury Funds

Shiden Network (Kusama) Proposal
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Facts

  1. SDN will have a max inflation of 10% per year from block rewards.
  2. 40% of the block rewards will go to the Treasury.
  3. The Treasury funds can be used for many purposes.
  4. The governance council will decide on how to use these funds.
  5. Some community members are concerned with the high inflation rate.

Proposal:
Can the governance council decide to burn the Treasury funds in case it is not needed, to maintain the scarcity and to achieve better price stability?

To all community members and token holders, please share your feedback.

8 Likes
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Thanks for your proposal.
The treasury will become a community-driven treasury in the future where the council can decide the use of these funds, that’s correct.

This is indeed something that can be decided by the council to burn part of the funds or to decrease the inflation rate. As soon as staking will be available in pools and dApps, more and more tokens will also be locked up and will help with the price stability.

4 Likes
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Thanks for your proposal. 10% inflation is not high for us since this is used for dApp staking. Regarding the treasury, the % of treasury from the block reward is highly likely deducted and increase the amount for dApp staking.

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Possible to give more % to dapp nominators?

3 Likes
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Yes, and this parameter needs to be decided after launching dApp staking.

3 Likes
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Hey guys
I suggest to not pay too much attention at this moment to the inflation: soon will be enable DApps staking and when parachain will support a higher load also NPoS.
Also please consider that Astar and Shiden will become a DAO: the inflation % could be decided by the council, in the future could be decreased and also start to burn fees and make it capped like BTC (this is the same that could be for Polkadot and Kusama)…a lot of opportunities…nothing is engraved on stone

6 Likes
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I agree to the idea that max supply should have cap in the future, especially after becoming DAO.
I still have same proportion in case redenomination. But Unlike redenomination, for the inflation, once 10% are released, my proportion is reduced :sweat_smile: This would discourage people for long term holding. I think other investors also prefer the coin that has cap like BTC.

1 Like
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I disagree with this. Inflation is necessary to do dApp staking in our ecosystem. If you don’t want to dilute your token, you can stake it.

1 Like
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different choice ,different inflotation at now.

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I have so much to catch up on. Going to be reading for days! But I love all of the activity