Dear DODO Team and Community,
We’ve observed growing concerns within our community about the inflationary pressures affecting the DODO token, notably in the vDODO staking pool. Our current metrics show an annualized emission rate of 3.1% coming from this pool (1 DODO per block), which poses a substantial long-term risk to the interests of DODO holders. This issue is further compounded by the noticeable stagnation in the number of vDODO holders, attributable to the unprecedented market conditions.
To proactively address these challenges, we respectfully propose the following action steps:
1. Temporary Suspension of DODO emission in the vDODO Staking Pool
We recommend suspending all DODO emissions from the vDODO staking pool until the market improves, aiming for this pause to be implemented by year’s end. This action targets reducing excessive token inflation, thereby fostering a more economically sustainable ecosystem for stakeholders.
Note: The proposed pause would only affect DODO emissions at a rate of 1 DODO per block and would NOT impact the 15% trading fee, which is used for DODO buybacks and subsequently distributed to vDODO holders. vDODO holders would continue to benefit from the yield generated from these monthly buybacks.
2. Zero Fee for vDODO Redemptions
In order to ease the transition following the proposed pause in DODO emissions, we suggest immediately reducing the vDODO exit fee to 0% upon approval of this proposal. This would provide vDODO holders the latitude to redeem their tokens without any financial penalties, should they choose to do so.
We also urge the team to monitor market conditions and innovate the DODO tokenomics continuously. The proposed emission cut serves as a temporary solution; resuming emissions or introducing a revised tokenomics model more suitable for current market conditions will need to be reviewed, discussed, and approved by the community.
We eagerly await your response and are open to further discussions to collaboratively refine this strategy.
Best regards,
Jeffrey