Introduction
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.
Proposal Details
- 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.
Benefits
- Market Perception: Signaling a steadfast commitment to value preservation will bolster our project’s appeal to existing and prospective investors, fostering confidence in BreederDAO’s long-term viability.
- Token Economy Health: A more balanced token supply will contribute to the overall health and sustainability of our token economy, underpinning our ecosystem’s resilience and growth potential.
- Support for Future Initiatives: BreederDAO’s balance sheet remains robust on the back of: a) 130M tokens remaining in the EDF, b) 230M tokens in BREED Treasury and c) its $40M liquid, and gaming operations treasury. The DAO will continue to be well-equipped to fund ongoing and future initiatives, such as staking rewards, without compromising operational effectiveness. Additionally, continuous growth in the DAO’s core business will ensure sustained progress and innovation within our ecosystem.
Implementation Plan
-
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.
Conclusion
In pursuit of our mission to enhance the blockchain gaming and metaverse experience, BreederDAO proposes this token burn initiative as a strategic step towards optimizing value and ensuring the long-term prosperity of our community.
BreederDAO recognizes the invaluable role of our community in shaping the direction and governance of our ecosystem. Through active participation, transparent communication, and inclusive decision-making processes, we remain steadfast in our commitment to fostering a thriving and equitable environment for all.
We invite active participation and feedback from all stakeholders as we collectively shape the future of BreederDAO.