There has been a lot of community discussions on DIP-2 since its announcement, and huge numbers of CommanDODOs have provided their valuable feedback on the subject. Given that the suggestion of allocating a percentage of future trading fees from liquidity pools on DODO to create a community treasury appears to be highly divisive among the community, this topic will be excluded from DIP-2 and its discussion will be resumed in the next improvement proposal.
In other words, DIP-2 will be solely focusing on the discussion of burning a percentage of future vDODO exit fees, while the upcoming DIP-3 will explore the possibility of the allocation of trading fees from DODO liquidity pools, and the creation of community treasury and the potential usages of its funds. Stay tuned for a more detailed announcement on DIP-3.
Summary
DIP-2 is proposing a deflationary mechanism for the DODO tokenomic model that consists of burning 50% of future vDODO membership exit fee tokens.
Motivation
As the user base of the DODO platform and the amount of DODO tokens in circulation continue to increase, it is necessary to tie platform growth together with token value capture. The goal of DIP-2 is to increase the number of DODO and vDODO token holders and to generate more benefits for them.
Specification
Currently, vDODO holders need to pay an exit fee to exit the DODO membership system, and the exit fee rate varies with the ratio of the total staked DODO tokens to the total DODO tokens in circulation. The exit fees are then immediately distributed to all remaining vDODO holders who have not exited.
If approved and implemented, DIP-2 could introduce an effective deflationary mechanism for the DODO token economic model. Specifically, more DODO tokens are burned over time as the number of vDODO members choosing to exit DODO membership increases, causing the total number of DODO tokens to decrease, and thus reducing selling pressure in the secondary market. However, vDODO holders would have to accept lower yields (i.e. exit fee payouts) if 50% of future vDODO exit fees were burned.
Available Options
There are two (2) options for the DODO community on DIP-2.
- Approve the burning of 50% of future vDODO membership exit fee tokens.
- Disapprove the burning of 50% of future vDODO membership exit fee tokens.
Governance Vote
Voting Period: May 18, 2021 at 15:00PM to May 21, 2021 15:00PM UTC+8 (Singapore time)
Voting Method: Users with both DODO tokens and vDODO tokens can vote via Snapshot. 1 DODO represents 1 vote and 1 vDODO represents 100 votes. Casting votes will not incur any gas fee.
Link: DIP-2: Burning of 50% of Future vDODO Membership Exit Fee Tokens
If you approve of the proposal, click Option1. If you disprove of the proposal, click option 2 and consider posting your thoughts and alternative proposals to DODO’s community forum. Feel free to post your thoughts and alternative proposals to DODO’s community forum.
If the total number of votes reaches at least 2 million and “Approve” receives a majority of the votes, the DODO team will implement the proposal.
Note: If you have DODO tokens, make sure that they are in wallets on Ethereum mainnet (wallets on centralized exchanges or Binance Smart Chain will not give you votes).