Votes1,693
Closed
With this proposal, we propose a $MIN Token burn that will address some of the concerns voiced by the Minswap community in the latest months. The long term aim of the DEX has always been to not entirely rely on Emissions, but rather have Trading Fees progressively become a bigger part of the yield earned by LPs. This shift towards sustainable yield also aims to transform $MIN from being a token held as a reward for farming, to being a token held for its utility.
There are several reasons why a $MIN Token burn makes sense: 1) Low Float and Clarifying Maturity Indicators 2) $MIN Farming Token surplus and 3) Community sentiment. However, if the intention is to make $MIN a scarce Token, it should be scarce for the Minswap Labs Team as well. Thus, we propose that Tokens be burnt both from the Yield Farming allocation and the Development Fund.
If you would like to learn more about the Background research for this Proposal, please read this study or see the original Forum Proposal. There are different options for voting so as to have as many community members be represented by the options as possible:
Option 1: No burn. In this Option, Tokenomics would remain as they currently are. The $MIN left for farming could last for around 22.8 more years at the current rate until fully used.
Option 2: Burn 20%, 18% from Yield Farming and 2% from Dev Fund. In this Option, the Dev Fund would be decreased from 452,495,022 $MIN to 352,495,022 (22.06% drop) and the Yield Farming $MIN would decrease from 2,947,666,843 to 2,047,666,843 (30.52% drop). The $MIN left for farming could last for 15.8 more years until fully used. The resulting circulating supply would be: ~25.48%.
Option 3: Burn 30%, 27% from Yield Farming and 3% from Dev Fund. In this Option, the Dev Fund would be decreased from 452,495,022 MIN to 302,495,022 (33.15% drop) and the Yield Farming MIN would decrease from 2,947,666,843 to 1,597,666,843 (45.79% drop). The MIN left for farming could last for 12.3 more years until fully used. Resulting circulating supply would be: ~29.12%.
Option 4: Burn 40%, 36% from Yield Farming and 4% from Dev Fund. In this Option, the Dev Fund would be decreased from 452,495,022 MIN to 252,495,022 (44.19% drop) and the Yield Farming MIN would decrease from 2,947,666,843 to 1,147,666,843 (61.06% drop). The $MIN left for farming could last almost 8.9 more years until fully used. The resulting circulating supply would be: ~33.98%.
This Proposal is based on Proposal posted on the Minswap Forum provided by PurritoGeneral, Ch!cken, Cardano Farmer, Nilez
