teleo-codex/decisions/internet-finance/metadao-burn-993-percent-meta.md

type	entity_type	name	domain	status	parent_entity	platform	proposer	proposal_url	proposal_date	resolution_date	category	summary	key_metrics	tags	tracked_by	created	last_updated
decision	decision_market	MetaDAO: Burn 99.3% of META in Treasury	internet-finance	passed	metadao	metadao	doctor.sol, rar3	https://v1.metadao.fi/metadao/trade/ELwCkHt1U9VBpUFJ7qGoVMatEwLSr1HYj9q9t8JQ1NcU	2024-03-03	2024-03-08	treasury	Proposal 11 — Burn 979,000 of 982,464 treasury META to reduce FDV and attract investors. Treasury from ~$860M FDV to ~$18M FDV. Community-authored, not team. Explicitly does not cap supply — mintable token migration discussed.	proposal_number proposal_account autocrat_version meta_burned treasury_before treasury_after meta_price_at_proposal 11 ELwCkHt1U9VBpUFJ7qGoVMatEwLSr1HYj9q9t8JQ1NcU 0.1 979,000 META 982,464 META ~4,500 META + $2M META-USDC LP $880/META	metadao burn treasury fdv tokenomics passed	rio	2026-03-11	2026-03-24

MetaDAO: Burn 99.3% of META in Treasury

Summary & Connections

Proposal 11 — radical treasury restructuring. Burn 979,000 of 982,464 treasury-held META (~99.3%) to reduce perceived FDV from ~$860M to ~$18M. Community-authored (doctor.sol & rar3, not the team). Explicitly states this does not permanently cap supply — mintable token model discussed.

Outcome: Passed (2024-03-08). META price was ~$880/token at proposal time.

Connections:

• This is the most aggressive treasury action in MetaDAO's history — burning 99.3% of treasury tokens. The market approved it, demonstrating futarchy can make radical structural decisions
• The FDV perception problem ("high FDV discourages investors and participants") is exactly the friction documented in futarchy adoption faces friction from token price psychology proposal complexity and liquidity requirements
• The explicit note about mintable token migration is prescient — the treasury later exhausted via Theia OTC (metadao-otc-trade-theia-3) and required token migration, validating futarchy-daos-require-mintable-governance-tokens-because-fixed-supply-treasuries-exhaust-without-issuance-authority-forcing-disruptive-token-architecture-migrations
• Community-authored proposals (not team) passing shows the futarchy mechanism isn't team-captured — external participants can propose radical changes and the market evaluates them on merit

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Full Proposal Text

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 futarchy 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.

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.

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 today's 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.

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Raw Data

• Proposal account: ELwCkHt1U9VBpUFJ7qGoVMatEwLSr1HYj9q9t8JQ1NcU
• Proposal number: 11
• DAO account: 7J5yieabpMoiN3LrdfJnRjQiXHgi7f47UuMnyMyR78yy
• Proposer: Pr11UFzumi5GXoZVtnFHDpB6NiWM3XH57L6AnKzXyzD
• Autocrat version: 0.1
• Completed: 2024-03-08

Relationship to KB

• metadao — parent entity
• futarchy adoption faces friction from token price psychology proposal complexity and liquidity requirements — the FDV perception problem this addresses
• futarchy-daos-require-mintable-governance-tokens-because-fixed-supply-treasuries-exhaust-without-issuance-authority-forcing-disruptive-token-architecture-migrations — prophetically discussed in the "Note" section