Simple Summary:
Burn 250MM token from the multisig treasury reducing the total supply of $Armor by ~25% to 750MM
Aim:
Improve the tokenomics of the governance token, provide peace of mind to our current holders, and generate marketing buzz about Armor.
Motivation:
After review of the total treasury value, the team believed that there is an unnecessary amount of $Armor tokens allocated to the following1:
- Payout of Development Grants
- Education programs
- Future Team members
- Future DAO funding
After discussion on the forums1, it is proposed to do a single burn, totaling 250MM tokens in the Armor Treasury. The belief is that this will:
- Improve tokenomcis
- Be used as a marketing tool to advertise the protocol
- Improve peace of mind for current users
Implementation:
Overview: These are the current allocations to each program in the treasury2:
- Payout development grants – 120MM allocated.
- Education programs – 60MM allocated.
- Future team members/partners – 162MM allocated, ~30MM has been disbursed so far (132MM remaining).
- Future DAO funding – 175MM allocated.
Cutting each allocation by 50% with an additional 5,773,200 from team funding would lead to a total of 249,273,200 $Armor. The new allocations in the treasury being:
- Payout development grants – 60MM allocated
- Education programs – 30MM allocated
- Future team members/partners – 60,226,800 allocated
- Future DAO funding – 87.5MM allocated.
The 249,273,200 $Armor would then be sent to address 0x000000000000000000000000000000000000dEaD, functionally “burning” the tokens from the supply. This amount, added to the previously 726800 $Armor burned from our previous social burns3 will equal exactly 250 MM $Armor burned and a new total supply of 750MM $Armor
Rationale:
On the forums, the community discussed the idea of more “social burns”, however consensus was reached that while the first two recent social burns were novel, it was best not to overdo that method of marketing and keep to one single burn event, that is independent of any engagement metrics. There was some discussion about utilizing the tokens for marketing instead of burning. However, the team’s belief is that this event will be a large marketing push in and of itself. Also, the team believes that the remaining funds allocated to each pool should still be sufficient for marketing and community needs. It is important to note these tokens are not in circulation and will not affect current market liquidity. However, the belief is that it will have a positive long term impact on current token holders peace of mind, by reducing the significance at which their current share of the protocol will be diluted.
Acknowledgements:
All user’s who contributed to this discussion on the forums:
BigSword, Robert_Forster, MasterzMind, Adambenyoun, Samanja, Adam, Hugo,
Ttfarmor35, JohnnyF, Filican619
Sources/References:
