I decided to bring an important upcoming issue to the community’s attention. The Lisk team completely overhauled the tokenomics during the migration, and without going into details, let’s set aside the fact that holders received half the proportion they had in the network before the migration. Now, we will discuss the upcoming vote on whether to keep or burn the 100M DAO tokens, which could ultimately increase the dilution to around 62%. Currently, it is almost 50%, to be precise, 49%. You can read my discussion with Dominic here and with Shuse2 here and draw your own conclusions. Let me briefly describe my idea.
Remember Elon Musk and Tesla? He received his compensation in the form of shares based on the stock price they achieved. We can do the same for the DAO. If the price reaches $5 and it holds for 1 month, 10 million tokens out of the 100 million will be unlocked and transferred to the DAO account. If the price reaches $7.5 and holds for 1 month, another 10 million tokens will be transferred to the DAO. This will continue in increments of $2.5 up to $27.5 per token. This way, token holders will be assured that they will get the token price; those who want to sell at that level can do so, or earlier, but everyone will have incentives.
New investors will be motivated to invest in the token, and the team will be driven to develop the product so that the token price increases over time, rather than just printing new tokens. Only then, and only under such conditions, will I believe in the sincerity of the Onchain Foundation regarding these DAO tokens. This is one compromise option for retaining these 100M tokens.
We should have a vote like this:
What should be done with the 100M DAO tokens?
1. Burn the tokens
2. Keep the tokens with unlocking linked to the price**
Price to unlock next 10M DAO tokens, USD | Time to unlock tokens not early than, even if price was reached |
---|---|
5 | 01 Jan 2027 |
7.5 | 01 Jul 2027 |
10 | 01 Jan 2028 |
12.5 | 01 Jul 2028 |
15 | 01 Jan 2029 |
17.5 | 01 Jul 2029 |
20 | 01 Jan 2030 |
22.5 | 01 Jul 2030 |
25 | 01 Jan 2031 |
27.5 | 01 Jul 2031 |
** If the price is reached and then drops, the tokens at that price will be unlocked when the time is reached.
Example 1: If the token price is currently $4, the current date is July 10, 2030, and the price increases to $22.5 and holds there for a month, then 80 million tokens will be unlocked immediately.
Example 2: If the token price is currently $30, and the current date is October 10, 2026, tokens will be unlocked over time.