Burn Proposal of the Unallocated SPELL per week!
tl;dr We are proposing to burn 5.25B SPELL tokens on January 3, 2022. The burned tokens will be coming from a reduction in the weekly emissions of SPELL used to incentivize liquidity.
The Current Situation
Our emission allocation for each farm is adjusted weekly to better follow market dynamics and movements. At the time of writing this article, the protocol currently has a benchmark emission rate of 1,161,501,384 SPELL per week.
This amount is distributed across various farms are as follows:
If you are interested in the exact amounts per farm, make sure to have a read here.
52% of the benchmark amount (currently 610,794,286 SPELL) are “Unallocated”. These tokens are not emitted and are instead kept in the treasury as a reserve in the event we need to add new farms or increase individual allocations.
You can track how many of these tokens are kept in our treasury over the weeks by following our Twitter Profile, where we publish a farm update every week!
Our previous burn proposal, which can be found here, highlighted the possibility of keeping the emissions benchmark steady until May 31, 2022 (1 year from the start of the mining program), resulting in a maximum total emission of approximately 29,037,534,600 SPELL including the unallocated amount.
Given the recent market conditions, the extraordinary adoption that MIM has seen, as well as the deep liquidity that our tokens have across multiple chains and DEXes, we believe that this amount is too high. We are proposing to burn some of the “Unallocated” portion of our weekly emissions.
The Proposal
In order to address this situation, we propose the following:
We will keep emissions steady for the next 4 weeks (i.e until January 3, 2022) emitting a total of 4,646,005,536 SPELL after which we will reduce the weekly unallocated portion by 250M SPELL. If we were to use the current regime as an example, the unallocated emissions would be lowered from 610M SPELL to 360M SPELL.
From January 3, 2022 to May 31, 2022, the weekly emission benchmark will then be lowered to 911,501,384 SPELL per week.
This will result in a total emission in the 21 weeks between January and May of 19,141,529,064 SPELL.
We believe that this amount together with the unallocated tokens from previous weeks will be enough to cover all of the existing and possible new farms until the 31st of May 2022.
This reduction would bring the total amount emitted from now until May 31, 2022 to 23,787,534,600 SPELL tokens, which translates into an overall emission reduction of 5,250,000,000 SPELL tokens.
Given the depths of our reserves and the wide adoption our tokens are experiencing, we feel confident that the incentivisation program is more than sufficiently funded and we are therefore proposing to burn these 5.25B SPELL on January 3, 2022.
Next Steps
The proposal has passed! Find the voting here!
Reach out to us on Discord or replying to this post if you have any questions!
