---
type: source
title: "Futardio: Burn 99.3% of META in Treasury?"
author: "futard.io"
url: "https://www.futard.io/proposal/ELwCkHt1U9VBpUFJ7qGoVMatEwLSr1HYj9q9t8JQ1NcU"
date: 2024-03-03
domain: internet-finance
format: data
status: processed
processed_by: rio
processed_date: 2026-03-11
claims_extracted: []
enrichments:
  - "metadao-burn-993-percent-meta — decision_market entity created"
tags: [futardio, metadao, futarchy, solana, governance]
event_type: proposal
---

## Proposal Details
- Project: MetaDAO
- Proposal: Burn 99.3% of META in Treasury?
- Status: Passed
- Created: 2024-03-03
- URL: https://www.futard.io/proposal/ELwCkHt1U9VBpUFJ7qGoVMatEwLSr1HYj9q9t8JQ1NcU
- Description: Burn 99.3% of META in Treasury?

## Summary

### 🎯 Key Points
The proposal aims to burn approximately 99.3% of treasury-held META tokens to reduce the Fully Diluted Valuation (FDV), enhance the attractiveness of META for investors, and promote community engagement.

### 📊 Impact Analysis
#### 👥 Stakeholder Impact
This action seeks to encourage broader participation from potential investors and community members by lowering the FDV.

#### 📈 Upside Potential
The reduction in token supply could increase demand and perceived value of META, leading to improved investor interest and engagement.

#### 📉 Risk Factors
Burning a significant portion of tokens may limit future financial flexibility and could deter investors concerned about long-term supply dynamics.

## Content

#### Authors
doctor.sol & rar3

### Overview
Burn ~99.3% `979,000` of treasury-held META tokens to significantly reduce the FDV, with the goal of making META more appealing to investors and enhancing community engagement.

### Background
The META DAO is currently perceived to have a **high Fully Diluted Valuation (FDV)** due to the substantial amount of META tokens in the treasury, approximately `985,000 tokens`. This high FDV often **discourages potential investors and participants** from engaging with META, as they may perceive the investment as less attractive right from the start.

### Issue at Hand
The primary concern is that the high FDV and treasury leads to the following problems:

1. **It encourages the use of META for expenses.**
2. **It lowers the attractiveness of META as an investment opportunity** at face value.
3. **It reduces the number of individuals willing to participate** in this futuarchy experiment.

While a high FDV can deter less informed community members, which has its benefits, it also potentially wards off highly valuable community members who could contribute positively.

#### Examples
- https://imgur.com/a/KHMjJqo
- https://imgur.com/a/3DH2jcO

### Proposed Solution
We propose **burning approximately ~99.3%** of the META tokens -`99,000 tokens` - currently held in the DAO's treasury. This action is aimed at achieving the following outcomes:

- **Elimination of Treasury META Payments**: Reduces the propensity to utilize $META from the treasury for proposal payments, promoting a healthier economic framework.
- **Market-Based Token Acquisition**: Future requirements for $META tokens will necessitate market purchases, fostering demand and enhancing token value.
- **Prioritization of $USDC and Revenue**: Shifting towards $USDC payments and focusing on revenue generation marks a move towards financial sustainability and robustness.
- **Confidence Boost in META**: By significantly reducing the supply of META tokens, we signal a strong commitment to the token's value, **potentially leading to increased interest and participation in prop 10 execution.**
- **Attracting a Broader Community**: Lowering the FDV makes META more attractive at face value, inviting a wider range of participants, including those who conduct thorough research and those attracted by the token's perceived tokenomics.

### Rundown of Numbers:
- **Current Treasury:** `982,464 META tokens`
- **After Burning:** `3,464 META tokens`
- **Post-Proposition 10:** An expected `1,000 META tokens` should be added back from multisig after prop 10, ranging anywhere from `0 to 3,000 META`.
- **Final Treasury:** After burning, the treasury would have around `4,500 META`, valued at `$4 million`, plus `$2 million in META-USDC LP` at todays price `$880 / META`.
- **Total META supply:** `20,885`

#### Note
Adopting this proposal does **not permanently cap our token supply.** The community is currently discussing the possibility of transitioning to a **mintable token model**, which would provide the flexibility to issue more tokens if the need arises.

## Raw Data

- Proposal account: `ELwCkHt1U9VBpUFJ7qGoVMatEwLSr1HYj9q9t8JQ1NcU`
- Proposal number: 11
- DAO account: `7J5yieabpMoiN3LrdfJnRjQiXHgi7f47UuMnyMyR78yy`
- Proposer: `Pr11UFzumi5GXoZVtnFHDpB6NiWM3XH57L6AnKzXyzD`
- Autocrat version: 0.1
- Completed: 2024-03-08
- Ended: 2024-03-08
