inbox/archive/2024-03-03-futardio-proposal-burn-993-of-meta-in-treasury.md

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+---
+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: unprocessed
+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