Proposal: Burn Mechanism

2.0 1inch DAO
1

Piggybacking off proposal: [1IP-11] 1inch Staking Pods - [1IP-11] 1inch Staking Pods

Proposal: Burn Mechanism

Abstract:

This proposal seeks to implement a new burn mechanism for 1inch token. The proposal includes a burn mechanism that would destroy 25% of the remaining 1inch DAO protocol revenue. This new system aims to provide additional incentives for staking by increasing the demand for the remaining tokens, and increase the overall value of the 1INCH token.

Motivation:

If the mentioned proposal passes, 50% of all current, and future, 1inch DAO protocol revenue shall be distributed to stakers. While this provides some incentives for staking, it may not be sufficient to attract a significant number of stakers and increase the overall value of the 1INCH token. By introducing a burn mechanism that would destroy 25% of the remaining 50% of the 1inch DAO protocol revenue, we aim to reduce the overall supply of 1INCH tokens and increase demand for the remaining tokens, thus increasing the overall value of the token

Details:

25% of the remaining 50% of the 1inch DAO protocol revenue will be burned, destroying those tokens permanently and reducing the overall supply of 1INCH tokens. The burn mechanism will be implemented in a new smart contract on the 1inch Network, and will be fully transparent and auditable. The burn mechanism will be done on a regular basis, with the exact schedule to be determined by the 1inch DAO. By implementing this proposal, we aim to provide additional incentives for staking by increasing the demand for the remaining tokens and increase the overall value of the 1INCH token. We believe that this proposal represents a positive step forward for the 1inch Network and will help to increase adoption and usage of the network’s future protocols.

2 Likes
2

Very good idea, I think the treasury funds are idle now, the current price of 1INCH is seriously underestimated, what should we do to maintain the value of 1INCH. I think there are at least a few things to try:

  1. Part of the revenue from the treasury is used to distribute dividends to stakers;
  2. Part of the revenue from the treasury is used to burn 1INCH;
  3. Part of the revenue from the treasury is used to add LPs to DEX. At present, 1INCH’s liquidity in Uniswap has dropped sharply. As a top DEX, its own TOKEN has very little liquidity, which is very unfavorable for new external investors to enter.

I think the above three possibilities can be discussed and implemented, and I look forward to seeing more opinions

3

What is the next step to getting this proposal put forward for voting?

1 Like