According to the latest Gartner Hype Cycle, blockchain has entered the enlightenment phase, where technologies and trends are maturing, and the benefits of innovation are becoming evident. This phase will see many early adopters entering the space.
The adopters entering now will prioritize benefits such as product safety and trust, usability, and low costs. For many years, Lisk has been experimenting to lower the barriers to blockchain adoption, and I am confident that this experience will be valuable moving forward.
In light of this, it is natural to think that the market, which has previously been driven by investor expectations leading to price increases, will gradually shift toward a model where increased product adoption attracts investors and subsequently drives up prices. This is also consistent with historical trends from a long-term perspective. Ignoring this economic principle, schemes that artificially inflate prices through large-scale token burns could lead to negative perceptions, resulting in prices not rising as expected, and potentially driving users away due to disappointment.
If I had to choose between two options at this point, I would support a sustainable “allocation.” However, I am not entirely against all forms of burning. As mentioned by przemer, if we can allocate a portion of sequencer revenue or other fees to a DAO fund, we could implement gradual burns while ensuring a sustainable DAO that will support the ecosystem for many years to come. This way, we can execute burns while maintaining a positive market sentiment.
First and foremost, we should focus on attracting more users to the Lisk ecosystem rather than artificial methods to raise prices. The hybrid approach mentioned in the agenda could be an effective means to achieve this. The community is at a point where it should explore new options.