Jacek.degen.eth 🎩
@jacek
GM Degens, Curious to hear your thoughts on a potential $DEGEN burn. The foundation currently holds 32.5% of the supply. While we could use it for future airdrops (like for the Degen app or other ideas), that would dilute current holders, which doesn’t feel right for those who’ve been hodling. We’ll always need some $DEGEN to keep building, but probably not 30%+. And let’s be honest, that big supply has scared off some new users worried about future inflation. One idea: a phased burn 🔥. Steadily burn tokens monthly until we reach a sustainable amount for years of building, while rewarding long-term holders. We wouldn’t burn everything, but it would shift tokenomics, and likely remove any big airdrops down the line. What do you think: burn or distribute more to the community?
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Corbin Page
@corbin.eth
Burning tokens rarely has the intended effect. Tokens are not rational markets. I’d recommend keeping it in the Treasury and lowing token allocations instead. For Burns, any fee mechanisms should be taken in ETH or stables and used to buy+burn $DEGEN. Creates buy pressure and lowers supply.
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Jacek.degen.eth 🎩
@jacek
Totally agree, earning fees and using them for buybacks + burns makes way more sense. But holding 30% of the supply still feels like a red flag. Even if we never sell, it gives the impression one player could dump anytime. We probably only need 10% to fund the project long-term and that would feel way healthier to the community.
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Corbin Page
@corbin.eth
You can use tools like hedgey.finance to lock tokens for a time. So lock up 20% for 24 months means you absolutely cannot sell but keeps optionality for later. During the 2021 Protocol DAO cycle, token holders could vote on what to do with the tokens when they unlocked. Maybe do something similar or at least give token holders veto power over a proposed usage (like a private sell to VCs to raise stables or allocating more community incentives).
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Jacek.degen.eth 🎩
@jacek
Yeah, could be an option.
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Alemac
@alemac
thanks corbin for sharing your thoughts, it’s a pleasure to read you!
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