Burn or Allocate to DAO Fund: Vote Now or Postpone

Proposals Funding
1

Summary

Hi,

In June 2024, Lisk/Onchain Foundation announced a proposal to burn 100 million LSK:

“Burn or Allocate to DAO Fund: We’re Inviting the Lisk Community to Decide the Fate of 100 Million LSK Tokens!”

We are announcing the date of a significant community vote for whether to keep or burn 100 million LSK tokens, representing 25% of the total capped supply of 400m. This community vote will offer our community a major opportunity to influence the strategic direction of the Lisk project through the newly launched Lisk DAO.

Scheduled to take place on September 24 and run for a period of 7 days until October 1st on the new Lisk DAO, this vote will give our community a significant opportunity to shape the strategic direction of Lisk."

Source: Lisk Blog

However, recently, the Lisk/Onchain Foundation decided not to proceed with the vote:

“We’ve heard the feedback from our community on the upcoming vote for the 100 million LSK proposal, originally set for the end of September 2024. Following community discussions and suggestions from a forum post by one of our delegates, and based on the strong support to postpone the vote, we’ve decided to move the vote to July 1, 2025.”

Source: Lisk Twitter/X

Motivation

According to the Lisk DAO constitution and common sense, ADAMANT believes that such a decision should not be influenced solely by “suggestions from a forum post by one of our delegates” but should be decided by a community vote.

Specification

The ADAMANT Messenger delegate currently holds 286k voting power.

“For creating a proposal, the voting power of the proposer must be at least 300,000 vpLSK.”

If the community delegates more voting power to meet the threshold, we will create a proposal as originally outlined in the Lisk publication:

Outcome 1: Community votes to burn the tokens. If the proposal is approved, the 100 million LSK tokens will be permanently removed from the total supply.

Outcome 2: Community votes against burning the tokens. If the proposal is rejected, the 100 million LSK tokens will be kept in the Lisk DAO Fund. These tokens will be vested into the fund from 2027 to 2033, with 15 million LSK distributed annually for six years, followed by 10 million in the seventh year.

Outcome 3: Quorum isn’t reached. If the quorum for the proposal isn’t met, no final decision will be made. The proposal will be resubmitted after some time until quorum is reached.

2

First of all, having a vote, to make a vote is a bit redundant. If you want to have a vote about burning just make a proposal yourself. You don’t have to wait for HQ to do it.

also I encourage you to read this topic DAO voting: Ensuring clarity on the burning proposal

it’s not so straightforward as you put in your 3 outcomes. With the tally system and the current participation the Outcome 2 = Outcome 3

1 Like
3

Hi,

just make a proposal yourself

We don’t have 300k vpLSK.

With the tally system and the current participation the Outcome 2 = Outcome 3

I’ve quoted the Lisk’s publication.

4

" According to the Lisk DAO constitution and common sense, ADAMANT believes that such a decision should not be influenced solely by “suggestions from a forum post by one of our delegates” but should be decided by a community vote."

I totally agree with that. This post: x.com did harm for lisk project. Not only it exposes incompetence of lisk team but also destroys the credibility of the project among investors community. It creates an even more negative sentiment out of an already existing very negative sentiment after abandoning lisk SDK and switching to ethereum network. Lisk team see opportunity and grow potential in ethereum network but community and investors see it as clinging to the last resort in hope that lisk project will survive. Community expects lisk team to show strength and confidence and most importantly to show everyone whole list of working dapps created on lisk. Most important things are hidden in lisk website and because of that lack of transparency people perceive this project being one big promise with no real potential. “Almost done” with everything for years now but it is time to show everybody what is the future of this project and it is time to rebuild bad reputation. If you fail again during this bull run you will never come back again. Supporting emerging markets is a good idea but you have to look at it realistically that 90% or more of projects taken from emerging markets won’t be successful. Some serious cooperation with someone who didn’t came from the street and already have well known good working product would be very useful. Also show that projects working on lisk really work and are used in real world. Show how those projects grow becoming successful.

2 Likes