m3taversal
1073c231c8
Co-authored-by: m3taversal <m3taversal@gmail.com> Co-committed-by: m3taversal <m3taversal@gmail.com>
88 lines
4.6 KiB
Markdown
88 lines
4.6 KiB
Markdown
---
|
|
type: source
|
|
title: "Futardio: Burn 99.3% of META in Treasury?"
|
|
author: "futard.io"
|
|
url: "https://www.futard.io/proposal/ELwCkHt1U9VBpUFJ7qGoVMatEwLSr1HYj9q9t8JQ1NcU"
|
|
date: 2024-03-03
|
|
domain: internet-finance
|
|
format: data
|
|
status: unprocessed
|
|
tags: [futardio, metadao, futarchy, solana, governance]
|
|
event_type: proposal
|
|
---
|
|
|
|
## Proposal Details
|
|
- Project: MetaDAO
|
|
- Proposal: Burn 99.3% of META in Treasury?
|
|
- Status: Passed
|
|
- Created: 2024-03-03
|
|
- URL: https://www.futard.io/proposal/ELwCkHt1U9VBpUFJ7qGoVMatEwLSr1HYj9q9t8JQ1NcU
|
|
- Description: Burn 99.3% of META in Treasury?
|
|
|
|
## Summary
|
|
|
|
### 🎯 Key Points
|
|
The proposal aims to burn approximately 99.3% of treasury-held META tokens to reduce the Fully Diluted Valuation (FDV), enhance the attractiveness of META for investors, and promote community engagement.
|
|
|
|
### 📊 Impact Analysis
|
|
#### 👥 Stakeholder Impact
|
|
This action seeks to encourage broader participation from potential investors and community members by lowering the FDV.
|
|
|
|
#### 📈 Upside Potential
|
|
The reduction in token supply could increase demand and perceived value of META, leading to improved investor interest and engagement.
|
|
|
|
#### 📉 Risk Factors
|
|
Burning a significant portion of tokens may limit future financial flexibility and could deter investors concerned about long-term supply dynamics.
|
|
|
|
## Content
|
|
|
|
#### 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.
|
|
|
|
## Raw Data
|
|
|
|
- Proposal account: `ELwCkHt1U9VBpUFJ7qGoVMatEwLSr1HYj9q9t8JQ1NcU`
|
|
- Proposal number: 11
|
|
- DAO account: `7J5yieabpMoiN3LrdfJnRjQiXHgi7f47UuMnyMyR78yy`
|
|
- Proposer: `Pr11UFzumi5GXoZVtnFHDpB6NiWM3XH57L6AnKzXyzD`
|
|
- Autocrat version: 0.1
|
|
- Completed: 2024-03-08
|
|
- Ended: 2024-03-08
|