---
type: decision
entity_type: decision_market
name: "ORE: Adopt a sublinear supply function?"
domain: internet-finance
status: passed
parent_entity: "[[ore]]"
platform: "futardio"
proposer: "proPaC9tVZEsmgDtNhx15e7nSpoojtPD3H9h4GqSqB2"
proposal_url: "https://v1.metadao.fi/ore/trade/5YA1NbUJWmGLorWtpTzBMfsMFLKa37oxb7pHwH7wSz9L"
proposal_date: 2024-11-18
resolution_date: 2024-11-22
category: "mechanism"
summary: "Reduce ORE supply cap from 21M to 5M tokens and implement 10% annual emissions reduction, creating scarcer distribution than Bitcoin"
tracked_by: rio
created: 2026-03-24
---

# ORE: Adopt a sublinear supply function?

## Summary
ORE approved a fundamental change to its tokenomics: reducing the supply cap from 21 million to 5 million tokens and implementing a 10% annual reduction in emissions rate (replacing infrequent halvings). The new curve reaches 50% dilution by ~year 5, 90% by ~year 18, and full dilution by ~2052. This makes ORE an order of magnitude scarcer than Bitcoin when fully diluted.

## Market Data
- **Outcome:** Passed
- **Proposal Account:** 5YA1NbUJWmGLorWtpTzBMfsMFLKa37oxb7pHwH7wSz9L
- **Proposal Number:** 2
- **DAO Account:** 7XoddQu6HtEeHZowzCEwKiFJg4zR3BXUqMygvwPwSB1D
- **Duration:** 2024-11-18 to 2024-11-22

## Supply Schedule
| Year | Circulating | Dilution |
|------|------------|----------|
| ~5   | 2.5M       | 50%      |
| ~18  | 4.5M       | 90%      |
| ~28  | 5M         | 100%     |

## Significance
This represents futarchy governing a critical monetary policy decision — the permanent supply curve of a proof-of-work token. The market approved a more deflationary model that balances competing community preferences: reduced FDV (addressing buyer sticker shock), faster-than-Bitcoin decay, order-of-magnitude scarcity, and ~30 years of mining runway. Described as "a major step forward in ORE's hardening process" toward freezing the contract permanently.

## Relationship to KB
- [[ore]] — parent entity, monetary policy
- [[futardio]] — governance platform
- [[dynamic performance-based token minting replaces fixed emission schedules by tying new token creation to measurable outcomes creating algorithmic meritocracy in token distribution]] — related mechanism concept

## Full Proposal Text

*Source: futard.io, tabled 2024-11-18*

Should ORE migrate to a deflationary emissions curve and reduce the supply cap to 5m tokens?

When ORE launched in April 2024, it was built with a linear emissions rate of 1 ORE/min and uncapped total supply. In response to overwhelming feedback from the community, we introduced an artificial supply cap of 21m tokens in the redesign of v2.

Over the last few months, the ORE community has continued to voice interest in accelerating ORE's distribution. After considering a series of alternative models, we propose:

1. Reduce the supply cap from 21m to 5m tokens
2. Reduce the emissions rate by 10% every 12 months

ORE's current limit of 21m tokens was originally chosen to mimic Bitcoin's total supply count. With a supply cap 4.2x lower, ORE's supply will be an order of magnitude more scarce than Bitcoin when fully-diluted.

Rather than infrequent "halvings" every 4 years, we believe ORE's mission would be better served by reducing emissions at a more gradual 10% per year. This would provide a faster, smoother, and scarcer distribution curve than Bitcoin.

We believe these changes strike an ideal balance:
- Reduces FDV to address sticker shock of buyers
- Introduces a deflationary curve that decays faster than Bitcoin
- Caps the supply an order of magnitude more scarce than Bitcoin
- Provides ~30 years of mining runway for onboarding and liquidity incentives

If passed, we will implement these changes and migrate the mainnet mining program. This would represent a major step forward in ORE's hardening process and bring us one step closer towards freezing the contract for good.
