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.