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

type	entity_type	name	domain	status	tracked_by	created	last_updated	parent_entity	platform	proposer	proposal_url	proposal_date	resolution_date	category	summary	tags
decision	decision_market	MetaDAO: Burn 99.3% of META in Treasury	internet-finance	passed	rio	2026-03-11	2026-03-11	metadao	futardio	doctor.sol & rar3	https://v1.metadao.fi/metadao/trade/ELwCkHt1U9VBpUFJ7qGoVMatEwLSr1HYj9q9t8JQ1NcU	2024-03-03	2024-03-08	treasury	Burn ~979,000 of 982,464 treasury-held META tokens to reduce FDV and attract investors	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

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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.