m3taversal
1d8f936726
Adds complete proposal text to all 28 MetaDAO governance records that previously had only hand-built summaries. This was the original batch from PR #1748 that was closed without merge due to rebase conflict. Records updated: - Proposals 1-15: LST vote market, Autocrat migrations (v01/v02), Saber vote market, spot market creation, AMM program, multi-option proposals, OTC trades (Ben Hawkins, Pantera, Colosseum), Dutch auction, burn 99.3% META, FaaS development, benevolent dictators, compensation - Proposals 16-36: Fundraise 2, Q3 roadmap, create Futardio, services agreement, hire Advaith, swap ISC, hire Robin Hanson, token split, release launchpad, OTC Theia, migrate META token, fund futarchy research Source: inbox/archive/internet-finance/ proposal archives from futard.io Pentagon-Agent: Rio <5551F5AF-0C5C-429F-8915-1FE74A00E019>
94 lines
5.8 KiB
Markdown
94 lines
5.8 KiB
Markdown
---
|
|
type: decision
|
|
entity_type: decision_market
|
|
name: "MetaDAO: Burn 99.3% of META in Treasury"
|
|
domain: internet-finance
|
|
status: passed
|
|
tracked_by: rio
|
|
created: 2026-03-11
|
|
last_updated: 2026-03-11
|
|
parent_entity: "[[metadao]]"
|
|
platform: "futardio"
|
|
proposer: "doctor.sol & rar3"
|
|
proposal_url: "https://v1.metadao.fi/metadao/trade/ELwCkHt1U9VBpUFJ7qGoVMatEwLSr1HYj9q9t8JQ1NcU"
|
|
proposal_date: 2024-03-03
|
|
resolution_date: 2024-03-08
|
|
category: treasury
|
|
summary: "Burn ~979,000 of 982,464 treasury-held META tokens to reduce FDV and attract investors"
|
|
tags: ["futarchy", "tokenomics", "treasury-management", "meta-token"]
|
|
---
|
|
|
|
# MetaDAO: Burn 99.3% of META in Treasury
|
|
|
|
## Summary
|
|
Proposal to burn approximately 99.3% of treasury-held META tokens (~979,000 of 982,464) to significantly reduce the Fully Diluted Valuation. Passed on Autocrat v0.1. The high FDV was perceived as discouraging investors and limiting participation in the futarchy experiment. Post-burn treasury: ~4,500 META valued at ~$4M plus ~$2M in META-USDC LP at the time ($880/META). Total META supply after burn: ~20,885.
|
|
|
|
## Market Data
|
|
- **Outcome:** Passed (2024-03-08)
|
|
- **Autocrat version:** 0.1
|
|
- **Key participants:** doctor.sol & rar3 (authors), Proph3t (executor)
|
|
|
|
## Significance
|
|
One of the most consequential early MetaDAO governance decisions. The burn fundamentally changed MetaDAO's token economics — eliminating the treasury's ability to pay in META and forcing future operations to use USDC or market-purchase META. This created a natural scarcity signal but also meant the DAO would eventually need mintable tokens (which the proposal explicitly noted as a future possibility). The burn set the stage for the later token split and elastic supply debates.
|
|
|
|
The proposal also reveals early futarchy dynamics: community members (not founders) proposed a radical tokenomics change, and the market approved it. This is a concrete example of futarchy enabling non-founder governance proposals with material treasury impact.
|
|
|
|
## Relationship to KB
|
|
- [[metadao]] — governance decision, treasury management
|
|
- [[futarchy enables trustless joint ownership by forcing dissenters to be bought out through pass markets]] — demonstrates market-governed treasury decisions
|
|
- [[ownership coin treasuries should be actively managed through buybacks and token sales as continuous capital calibration not treated as static war chests]] — burn as extreme active management
|
|
- [[futarchy-daos-require-mintable-governance-tokens-because-fixed-supply-treasuries-exhaust-without-issuance-authority-forcing-disruptive-token-architecture-migrations]] — this burn directly created the conditions that made mintable tokens necessary
|
|
|
|
---
|
|
|
|
Relevant Entities:
|
|
- [[metadao]] — parent organization
|
|
- [[proph3t]] — executor
|
|
|
|
Topics:
|
|
- [[internet finance and decision markets]]
|
|
|
|
## Full Proposal Text
|
|
|
|
*Source: futard.io, tabled 2024-03-03*
|
|
|
|
#### 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.
|