Objective: To combat the downward price action caused by token dilution by offsetting the supply that is being added over time. This proposal aims to make $karrat more appealing to new investors by increasing the circulating supply percentage without additional dilution.
Proposal: We propose to burn 100,000,000 $karrat tokens from the DAO’s treasury, which currently holds 30% of the total supply. This action will effectively reduce the total max supply of $karrat by 10%.
Rationale:
- Combating Dilution: As new tokens are added to the supply over time, the value of existing tokens tends to decrease due to dilution. By burning a significant portion of the treasury’s holdings, we can counteract this effect and help stabilize the token’s value.
- Increasing Circulating Supply: Currently, only 10-12% of the total $karrat supply is in circulation. Burning 10% of the total supply will increase the circulating supply to 20-22%, making $karrat more attractive to investors by reducing the impact of dilution on their holdings.
- Investor Appeal: A higher circulating supply percentage can make $karrat more appealing to new investors, as it demonstrates proactive measures to maintain and potentially increase the token’s value. This can lead to increased investor confidence and market interest in $karrat.
Conclusion: By implementing this burn of 100,000,000 $karrat tokens, we aim to enhance the overall value proposition of $karrat, making it a more stable and attractive investment option. This strategic move is expected to benefit both current and future investors, promoting the long-term success and sustainability of the $karrat ecosystem.