f70720aa78
- 131 sources → processed (matched to decisions/entities by proposal hash) - 72 sources → null-result (test/spam) - 109 sources → null-result (futardio unmatched, no KB output) - 91 sources kept unprocessed (genuine backlog: health, ai-alignment, space-dev, etc.) - 117 decisions get source_archive backlinks - 131 archive sources get derived_items forward links - Linking pattern: frontmatter only, file paths as identifiers (Ganymede Option A) Script: reconcile-sources.py (proposal hash matching + entity name matching) Co-Authored-By: Epimetheus <noreply@pentagon.ai>
95 lines
5.9 KiB
Markdown
95 lines
5.9 KiB
Markdown
---
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type: decision
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entity_type: decision_market
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name: "MetaDAO: Burn 99.3% of META in Treasury"
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domain: internet-finance
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status: passed
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tracked_by: rio
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created: 2026-03-11
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last_updated: 2026-03-11
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parent_entity: "[[metadao]]"
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platform: "futardio"
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proposer: "doctor.sol & rar3"
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proposal_url: "https://v1.metadao.fi/metadao/trade/ELwCkHt1U9VBpUFJ7qGoVMatEwLSr1HYj9q9t8JQ1NcU"
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proposal_date: 2024-03-03
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resolution_date: 2024-03-08
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category: treasury
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summary: "Burn ~979,000 of 982,464 treasury-held META tokens to reduce FDV and attract investors"
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tags: ["futarchy", "tokenomics", "treasury-management", "meta-token"]
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source_archive: "inbox/archive/2024-03-03-futardio-proposal-burn-993-of-meta-in-treasury.md"
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---
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# MetaDAO: Burn 99.3% of META in Treasury
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## Summary
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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.
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## Market Data
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- **Outcome:** Passed (2024-03-08)
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- **Autocrat version:** 0.1
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- **Key participants:** doctor.sol & rar3 (authors), Proph3t (executor)
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## Significance
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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.
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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.
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## Relationship to KB
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- [[metadao]] — governance decision, treasury management
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- [[futarchy enables trustless joint ownership by forcing dissenters to be bought out through pass markets]] — demonstrates market-governed treasury decisions
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- [[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
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- [[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
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---
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Relevant Entities:
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- [[metadao]] — parent organization
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- [[proph3t]] — executor
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Topics:
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- [[internet finance and decision markets]]
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## Full Proposal Text
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*Source: futard.io, tabled 2024-03-03*
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#### Authors
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doctor.sol & rar3
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### Overview
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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.
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### Background
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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.
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### Issue at Hand
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The primary concern is that the high FDV and treasury leads to the following problems:
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1. **It encourages the use of META for expenses.**
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2. **It lowers the attractiveness of META as an investment opportunity** at face value.
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3. **It reduces the number of individuals willing to participate** in this futuarchy experiment.
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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.
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#### Examples
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- https://imgur.com/a/KHMjJqo
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- https://imgur.com/a/3DH2jcO
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### Proposed Solution
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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:
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- **Elimination of Treasury META Payments**: Reduces the propensity to utilize $META from the treasury for proposal payments, promoting a healthier economic framework.
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- **Market-Based Token Acquisition**: Future requirements for $META tokens will necessitate market purchases, fostering demand and enhancing token value.
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- **Prioritization of $USDC and Revenue**: Shifting towards $USDC payments and focusing on revenue generation marks a move towards financial sustainability and robustness.
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- **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.**
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- **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.
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### Rundown of Numbers:
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- **Current Treasury:** `982,464 META tokens`
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- **After Burning:** `3,464 META tokens`
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- **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`.
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- **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`.
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- **Total META supply:** `20,885`
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#### Note
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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.
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