Effective Burn of Excess Act III ROOK

KIP- Effective Burn of Excess Act III Emission

Proposal

I propose we decide to permanently remove from future emissions, or effectively burn, the 42,875 ROOK that was not minted during Act III due to the delayed Hiding Vault launch.

Background

During Act III, we originally allocated 49,000 ROOK for Hiding Vault rewards. As the Hiding Vault rewards did not begin until we were a majority of the was through Act III, it was decided that a prorated 6125 ROOK with be minted. It was decided that the leftover 42,875 ROOK from the original Act III emissions schedule would have its fate decided by governance.

Well today is the day we decide to let it burn (but not really).

If passed, deciding to permanently remove the 42,875 ROOK from the total supply will effectively burn this ROOK.

This will not impact future emissions, as our schedule already operates as if the full amount of ROOK from Act III was already minted and distributed.

In summary, passing this proposal actually means we get to take no action; no gas is wasted, and everyone’s ROOK becomes slightly more valuable.

Specification

Permanently remove 42,875 ROOK from the emissions schedule, reducing total ROOK supply from 1,500,000 to 1,457,125.


3 Likes

Sounds good to me. Agree.

1 Like

The other option is to keep the rook and use it as rewards in the HG during the upcoming acts or whatever other products we will develop down the road. The HG adoption is not great. I know farmers are a pain but as far as I know, the only advantage of using keeperdao limit orders instead of 1inch limit orders is the rook rewards.

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I get the intention to use ROOK rewards to drive adoption. But don’t we have upcoming emissions which we can use for same intiatives?

I strongly opt for burning excessive ROOK rewards that were minted for ACT3.

Rewards are much more meaningful if they are milestone based. As there was a delay in launching HV, it sends a strong signal to holders or people watching Keeper DAO that we have forfeited xyz tokens from total supply as there was a delay in launch of a product.

Anyhow we are burning the tokens which were supposed to go to HV users. As we couldn’t launch at the correct time, it makes sense to burn them rather than using them to dilute further in the market.

We anyway have enough upcoming emissions which we can redirect/use efficiently for initiatives that drive more users to KD ecosystem

3 Likes

I personally would not burn these yet. No reason to make a knee jerk reaction in an attempt to affect short-term price action.

My recommendation would be to put them to use to try to bring users into the platform whether its for the hiding game or liquidity pool incentives (ducks).

Whatever reason we can get people coming to KD and using it is positive. I know we have the treasury so the user funded liquidity pools aren’t as important but the treasury is better used elsewhere. Let people earn high yield by locking with us and thus bring people into the platform by any means necessary. Require a 30 day lock on all earned rewards.

One suggestion aside of increasing the allocation to HG rewards would be to use them as a lottery type allotment where a 5-10 daily HG users would randomly be selected to win an additional 10 rook. No additional requirements, all you have to do to enter the lottery is have an executed order for the day. Any size order qualifies.

Why mint these tokens with no purpose! We have a schedule. Mint and burn!

3 Likes

I see no reason to mint and save these tokens.

If there is interest in establishing gamified rewards, that is an independent proposition and should be discussed elsewhere. We have 101,000 ROOK in the treasury that we can use for user acquisition, instead of messing with old tokens. In general, we should be looking to use the treasury for new initiatives or concepts. Let’s stay on the topic of the excess Act III ROOK, which doesn’t have a clear use, and therefore would cause negative externalities brought to the market.

In the context of this proposal, I believe we should mint them for accounting purposes. We then should burn these tokens. Inflation has had severe negative consequences on the health of this project. Let’s stop the pattern asap.

3 Likes

I don’t see any valid reason not to burn this tokens that are no longer needed.
We do have other tokens and tons of funds in the treasury reserved for different purposes.

Giving away rook as peanuts to people that don’t care holding because there is no use case was not a good idea imho, the trade offs were really huge. It’s time to balance the things a bit and reduce the supply. Personally, I think we should focus on making our product a must use for users so we don’t need to award free tokens to them. I think they already get the best deal and this deal will only become better by the end of year.

3 Likes

Time to be strict on our emissions. The ACT 3 emissions were supposed to be given away to HV users and we didn’t as there was a delay.

So, perfectly makes sense to burn these tokens. As lapras said, we have treasury/further emissions that can be put to good use as mentioned above.

In strong favour of burning these extra ROOKs.

2 Likes

I agree with burning the tokens. If they have no functionality now we have no reason to keep them.