teleo-codex/domains/internet-finance/governance-power-leaderboards-with-exclusive-perks-create-token-lockup-incentives-that-reduce-circulating-supply.md

type	domain	description	confidence	source	created
claim	internet-finance	Real-time leaderboards offering exclusive rewards incentivize token holders to lock tokens for governance power multipliers	experimental	Dean's List DAO ThailandDAO proposal (futard.io, 2024-06-22)	2024-06-22

Governance power leaderboards with exclusive perks create token lockup incentives that reduce circulating supply

The Dean's List DAO ThailandDAO proposal demonstrates a mechanism where exclusive real-world perks (travel, accommodation, event access) are awarded based on governance power rankings, creating incentives for token holders to lock tokens for extended periods to increase their governance power through multipliers. The proposal explicitly states that "members lock their $DEAN tokens to increase governance power and climb the leaderboard ranks" and projects this will cause "the circulating supply of the token will decrease significantly."

The mechanism combines:

• Real-time public leaderboard showing governance power rankings
• Exclusive perks for top positions (top 5: airplane fares + 12-day accommodation; top 50: IRL events, airdrops, ongoing perks)
• Token locking with multipliers to increase governance power
• Time-based campaign creating urgency (ThailandDAO event Sept 25 - Oct 25)

The proposal projects this will reduce circulating supply enough to drive a 15x price appreciation ($0.01 to $0.15) and increase FDV from $123,263 to over $2,000,000, though these specific projections are speculative and unvalidated.

Evidence

From the Dean's List DAO proposal:

• "Deposit your $DEAN tokens or even lock them for a multiplier to increase your governance power and receive awesome perks"
• "As members lock their $DEAN tokens to increase governance power and climb the leaderboard ranks, the circulating supply of the token will decrease significantly. This reduction in supply will create upward pressure on the token price."
• Top 5 governance power holders receive airplane fares and accommodation for 12 days
• Top 50 members receive invitations to IRL events, parties, airdrops from partners
• Campaign duration: Sept 25 - Oct 25, 2024 (ThailandDAO event)
• Estimated allocation: 5-7 million $DEAN tokens for the initiative

Limitations

This is a single proposed mechanism that failed to pass (proposal status: Failed, completed 2024-06-25). The actual effectiveness is unproven. The projected 15x price appreciation and $2M FDV are speculative projections from the proposers, not observed outcomes. No data exists on whether token holders actually locked tokens at the projected scale or whether the mechanism achieved the intended supply reduction.

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• futarchy-governed-liquidation-is-the-enforcement-mechanism-that-makes-unruggable-ICOs-credible
• MetaDAO-is-the-futarchy-launchpad-on-Solana-where-projects-raise-capital-through-unruggable-ICOs-governed-by-conditional-markets-creating-the-first-platform-for-ownership-coins-at-scale

Topics:

• internet-finance/_map