$FIS Burn Proposal (Discussion).
22 Aug 2024, 11:23
$FIS Burn Proposal (Discussion)
We are proposing to burn 100% of the $FIS tokens that continuously flow into the treasury address.
This action is intended to reduce $FIS inflation from 10% to around 6%, transitioning the token towards a deflationary model.
✅FIS circulation overview
Circulating $FIS supply is currently 145.829 million. From the 10% inflation rate, 6.2% of inflated FIS goes to stakers and validators, while 3.8% is allocated to the address trsry in the treasury.
trsry:
✅FIS Treasury
$FIS Treasury consists of three main components: inflated $FIS, vested $FIS from genesis, and protocol income generated from $rToken services.
For now:
Total FIS in the treasury: 55,987,197.860 $FIS
Staking: 55.82%
Remaining: 44.17%
Protocol income: 2,373,903 $FIS
✅FIS Burn Proposal Detail
We propose burning 100% of inflated FIS every 30 days that flow into the treasury address. This will result in:
1️⃣A total treasury of 55,987,197.860 $FIS + Protocol income + 0% inflation $FIS.
2️⃣A decrease in $FIS inflation from 10% to approximately 6%.
✅Why
1️⃣Reinforce the value of the $FIS token
2️⃣Can cover anticipated expenditures for the coming years for current $FIS treasury
3️⃣Further boost revenue in the transition from StaFi rToken to LSaaS
4️⃣Move StaFi towards a deflationary model
✅Future Burn
Future deflationary strategies include but are not limited to:
1️⃣Support a buy-and-burn mechanism.
2️⃣Lower the inflation rate from 6% to around 1-3%.
3️⃣Decouple rToken from StaFiChain & StaFi Hub and migrate $FIS & $rFIS to an Ethereum contract as the primary chain.
✅Next Steps
After a thorough discussion for the proposal in the DAO forum, a voting will be followed. Upon approval, the dev team will prepare for the $FIS burning.
Your insights will be highly valued, welcome to join the discussion!
▶️Proposal:
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