Title: Proposal for Adshares Token Burn
Intro: This proposal suggests burning a certain percentage of the Adshares tokens to reduce the circulating supply and increase the value of each token.
Motivation: The cryptocurrency market is highly volatile, and the value of tokens is subject to market conditions. Burning a certain percentage of tokens will reduce the supply, thereby increasing the value of each token. This will not only benefit the token holders but also attract more investors to the Adshares ecosystem.
Specification: The proposal suggests burning 10% of the Adshares tokens from the total supply of 1 billion. The tokens will be burned by sending them to a burn address that is not retrievable. This process will be carried out on a regular basis to maintain a reduced circulating supply of Adshares tokens.
Steps/Milestones:
- Establish a burn address that is not retrievable and transfer 10% of Adshares tokens to this address.
- Carry out regular token burns to maintain a reduced circulating supply.
Timeline: The first token burn will take place within 1 month of the proposal being approved. Subsequent token burns will be carried out quarterly.
Cost: There are no costs associated with token burns.
Risks: One of the risks associated with token burns is that it may lead to a temporary decrease in the total market capitalization of Adshares. However, this is a short-term risk, and the long-term benefits of token burns outweigh this risk. Additionally, token burns may affect the liquidity of Adshares tokens, but this risk can be mitigated by ensuring that token burns are carried out in a phased manner.
As a person with limited knowledge of tokenomics, I would say that the proposal for token burning in Adshares may seem somewhat risky, especially if the impact on token value and the project’s financial health is not fully understood.
However, I also acknowledge that token burning is a common practice in the cryptocurrency world to enhance token value and improve the project’s perception within the community. Therefore, if Adshares’ tokenomics experts have thoroughly evaluated the risks and benefits and have concluded that token burning is the best strategy for the project, then it may be worth considering.
I understand that Adshares has its own burning and rewarding mechanism in place, which seems to be appropriate for the sustainable functioning of the ecosystem. Therefore, if I were to vote, my choice would be Abstain for that reason.
Pros:
- Increased token value: Burning a percentage of tokens will likely increase the value of each remaining token due to the reduced supply. This can make the Adshares ecosystem more attractive to investors.
- Long-term benefits: Although there may be a temporary decrease in the total market capitalization, the long-term benefits of increased token value and demand for the Adshares ecosystem outweigh the short-term risks.
- No associated costs: Token burns do not require any financial investment, which makes this proposal cost-effective and easily implementable.
Cons:
- Temporary decrease in market capitalization: The token burn might cause a short-term decrease in the total market capitalization of Adshares, which can affect investor confidence.
- Liquidity issues: Token burns may impact the liquidity of Adshares tokens. However, this risk can be mitigated by carrying out the burns in a phased manner.
- Potential for centralization: Regular token burns may lead to centralization concerns, as some investors might view it as a way to manipulate the token price. Transparency in the burning process is crucial to alleviate these concerns.
Conclusion: Overall, the proposal for Adshares token burn has its merits and potential drawbacks. Implementing a token burn can increase the value of the remaining tokens and attract more investors to the Adshares ecosystem, which will positively impact the project. However, it is crucial to address potential risks such as liquidity issues and centralization concerns.
Adshares could benefit from the token burn if it is executed in a phased and transparent manner. Regular monitoring of the market conditions and adjusting the token burn strategy accordingly will ensure that it benefits the market, clients, and partners. In conclusion, if implemented carefully and with the necessary precautions, the token burn can be a positive move for Adshares.
I believe that a good project with good tokenomics should not burn tokens because they are…too valuable. Burning tokens for me means something went wrong. In fact, burning tokens is a common practice, unfortunately I have the impression that it is intentional. Projects release a large amount of tokens, earn on the amount, and when the price goes down, they boost it with information about burning tokens. In my utopian world, I’d rather not have such situations.
However, we live in such a world that it is a practice in cryptocurrencies. From the point of view of an investor who already has ADS coins, this can be beneficial. For me personally - I am against the proposal.