Abstract
The DAO has received recommendations from its members to implement a token burn, which has been reignited after a successful buyback and burn proposal.
BreederDAO has consistently strived to foster a robust ecosystem for blockchain gaming and the metaverse. In line with our commitment to value creation and sustainability, we deem it appropriate to listen to the community, and propose a token burn initiative aimed at optimizing our token supply and enhancing long-term value for our stakeholders.
Rationale
Supply Optimization: The reduction of our token supply by 100 million tokens, representing 10% of the total supply, will contribute to increased scarcity and returning value to stakeholders, on top of safeguarding against unnecessary dilution of token worth.
Long-term Value: Through careful reduction of the token supply, we aim to fortify the foundation for sustained value appreciation, ensuring enduring benefits for all members of our community. We remain confident in the long term growth of BreederDAO, $BREED, and its treasury.
Specifications and Timelines
Amount to Burn: 100 million tokens will be burned, originating from the Ecosystem Development Fund (EDF). This selection minimizes operational impact while fulfilling our commitment to value optimization.
Post-Burn EDF Balance: Following the burn, the EDF will retain approximately 130 million tokens, maintaining substantial reserves for ongoing and future endeavors, including staking rewards and ecosystem development activities. Additionally, a series of buybacks will be conducted to fortify our growing treasury and reinforce our ethos of asset generation and distribution.
Proposed Steps for Implementation
- Community Review Period: Upon submission of this proposal, BreederDAO will initiate a seven-day window for community members to review the details outlined herein. During this period, all members will have the opportunity to engage in discourse, pose questions, and provide insights regarding the proposed token burn.
- Voting Mechanism: Following the conclusion of the community review period, BreederDAO will conduct a formal voting process to gauge community sentiment and obtain consensus on the proposed token burn. Each member will be provided with a secure voting mechanism to cast their vote in favor of or against the proposal.
- Result Announcement: Upon completion of the voting period, BreederDAO will announce the outcome of the vote, along with a summary of community feedback and any modifications made to the proposal based on such feedback. This transparent disclosure of results ensures accountability and fosters trust within our community.
- Implementation Timeline: The timeline for executing the token burn will be determined based on the outcome of the community vote and any necessary adjustments to the proposal. BreederDAO remains committed to conducting the burn in a transparent manner, with due consideration for community input and consensus.
Budget and Financial Impact
None.
Voting
Cast your vote on the proposal here.