It has been a concern of many that Minswap has a very low float and circulating supply. In an emission schedule where this supply was to be released in the relative short term, it would not be wise to tamper with it.
However given that emissions are set to be distributed for almost 25 years (when taking the lower emission bound), it may not be a bad idea to cut the total supply of $MIN on the backend and hence this has been a topic of discussion.
This is very controversial and it is a straightforward burn as opposed to a gradual burn with complex mechanics that directly tie to DEX and on-chain metrics.
Theoretically it would have zero impact on how the protocol operates, the emissions, and existing dilution metrics. The biggest change would be that the emissions would run out faster. The advantage on the other hand is that it gives the protocol better optics during a time of early adoption and Minswap’s debut, it takes care of the low float issue, increases our chances of staying relevant at the expense of shaving off a few years off of emissions on the backend, and makes the impact of decisions taken by the DAO more trackable rather than leaving these decisions to the whims of dilution over 25 years.
Some may think that this skews the % allocation of tokenomics, but the actual token amounts allocated to various purposes (such as team allocation) would not change. The only time the original allocation % would be met is once all supply is released. Given that the current schedule is set to stop emissions almost 2.5 decades away, by which time many people here may have moved on to other pursuits, it does not make sense to fear that a certain category will have a higher % allocation decades down the line when it is our duty to take every action possible as a DAO to maintain our relevancy in the mean time. Not to mention that tokens would constantly be bought and sold, further skewing what these % allocation would realistically end up as once full supply is circulating decades later.
This proposal is just to gauge what the right duration of emissions should be. It aims to bring the emissions into a time range that the DAOs actions have a higher chance of impacting. There is no guarantee that Minswap will be relevant 25 years from now, but a pretty good chance it will be more than relevant a couple years from now.
To that end, assuming that a token burn is the right thing to do from the backend in order to reduce emissions and shorten the emission schedule in return for a higher chance of adoption. What option would you think would be the best duration for emissions to continue for this protocol?
- 1-5 more years
- 6-10 more years
- 11-15 more years
- 16-20 more years
- 20-25 more years