Token Burn or Return Proposal

1

Title: Token Burn or Return Proposal

Authors: RSA (BanklessHQ), David (BanklessHQ), Rachel (BanklessHQ), Kaitlyn (BanklessHQ)

Editors: Icedcool🏴, links🏴(BanklessDAO),

Date: Jan 23, 2024

Background

This is a follow-on to our initial proposal on brand clarity between BanklessDAO and BanklessHQ. As covered in the initial proposal, we (Ryan Sean Adams and David Hoffman), are proud of BanklessDAO’s work, though not actively involved in its operations or success. Given this, we are proposing our BANK tokens held personally and via BanklessHQ either be burned or returned to the DAO.

Further details on our reasons for this are outlined here.

We can leave it up to the DAO to decide either burn or return through a vote. We will only retain enough tokens to remain acting and equal members of the DAO (35,000 BANK each at the time of this proposal).

Intent

Myself (Ryan), David, and BanklessHQ still have 100% of the BANK tokens from our portions of the genesis proposal allotment. Nothing from our allotments have been spent or sold.

After the this governance vote, we will plan to burn or return all but 35,000 BANK tokens each, and also burn or return 100% of the supply of BanklessHQ’s tokens. We are proposing that the DAO vote to move forward with one of the following plans:

Either:

  1. Burn 183,930,000 remaining BANK tokens

OR

  1. Return 183,930,000 amount of BANK tokens to the DAO treasury

BANK Token Snapshot

Outlined below is the current state of Bankless HQ + teams holdings:

  • BanklessHQ currently holds 102 million Bank tokens, 10.2% of the total BANK supply
  • Ryan Sean Adams holds 20,500,001.58 vested BANK, 15,067,886.46 unclaimed BANK and 5,432,113.87 unvested BANK in wallet 0xe9d18dbfd105155eb367fcfef87eaaafd15ea4b2
  • David Hoffman holds 20,540,305.038 vested BANK, 15,036,515.09 unclaimed BANK and 5,423,179.88 unvested BANK in wallet 0xfa53d837b5ddd616007f91487f041d27edb683a0

Total BANK to be burned or returned: 183,930,000

The Plan

Phase 1: By February 29th 2024, Bankless HQ will burn or return 142,935,306.62 BANK tokens to DAO treasury address 0xf26d1bb347a59f6c283c53156519cc1b1abaca51

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Phase 2: By December 27th, 2024 the remaining BANK tokens will be fully vested. Ryan and David will burn or return 10,895,600.11 BANK to 0xf26d1bb347a59f6c283c53156519cc1b1abaca51 address

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VOTE: Would you prefer BanklessHQ, RSA, and David to burn these tokens or return them to DAO treasury?

  • Burn
  • Return to Treasury
  • Abstain
0 voters
8 Likes
2

Returning gives the DAO maximum flexibility, in the long run, to decide how to manage the BANK token. We could always choose to burn some at a later date if there were a compelling reason to do so, but I don’t see any reason to do it now.

6 Likes
3

Thank you so much for this proposal, in my mind, it demonstrates HQ’s willingness and intent to do what is best for both the DAO and HQ, a win-win for both.

I do have a question about the pros and cons of burning vs. returning BANK to the DAO. I’m presuming that burning the BANK tokens will reduce the supply and therefore (probably temporarily) increase the value of BANK? Would returning the BANK to the DAO have any negative/positives for the token price, or any other possible negative effects by doing so?

6 Likes
4

My one suggestion is that instead of retaining 35,000 BANK tokens to remain a member of the DAO, you could each hold 40,000 BANK and stake it to tlBANK. That would demonstrate alignment and membership within the DAO and still give you governance rights.

12 Likes
5

I voted return. Burning may positively affect token price, but returning would open a whole world of potential opportunities, such as:

  • RPGF / QF funding rounds
  • Bankless Academy learn-2-earn
  • Bankless Card / Wallet rewards pools
7 Likes
6

first of all, it is good to see commitment to return/burn tokens in HQ, and David and your holdings

voted for returning to treasury, it will almost double DAO runway, and ensure that we have more time to increase bDAO presence in crypto ecosystem, and fund more ideas and projects that could rise through bDAO

agree with this, it would make negligible change to original proposal, although I think that 80k is needed to lock tlBANK for one year, which seems more reasonable alignment, so maybe keep 80k is better suggestion

6 Likes
7

As discussed in the most recent Treasury Management meeting, we recommend returning the assets to the DAO, which creates the most opportunities for DAO.

Yes, burning would basically be the same as increasing the value of every token proportional to the burn.

While returning to the treasury returns the BANK for the DAO to decide what to do with, which could include burn at a later date or distribution.

And 100% recommend @rsa and David to lockup in tlBANK! :+1:

7 Likes
8

Thanks, @Icedcool for the response, I appreciate the clarification. I agree that allowing the DAO to have more flexibility to redistribute and/or burn at a later date would be the most beneficial to the DAO. Therefore, I’m voting to return the BANK to the DAO.

And I also agree with @cyclist , that 80K BANK each, staked to tlBANK signals to both the DAO and the X-pundits that HQ aligns with supporting the longevity of the DAO.

6 Likes
9

I think this is not the best approach. Just resembles the proposals of DeFi summer, burning its the short and easy way that no one of us needs at this point, times in which we are free to publish and share a decentralized governance ecosystem. Let the time see how this experiment goes.
Best

2 Likes
10

I vote to return BANK tokens to the DAO and I also support @coffee-crusher and @cyclist suggestions of holding either 40k or 80k each which will be locked up in tl BANK. This way they can both have governance rights and also are in alignment with the DAOs vision moving forward.

3 Likes
11

Thanks for the feedback all. I’ve closed the thread with this as the final result.

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We’ll take this as soft consensus that the DAO would prefer us to Return the BANK tokens to Treasury. FWIW this makes sense to me, because if the tokens are Returned the DAO can burn them at a future date, so doesn’t lose lose the burn option.

We’ve also seen the recommendation that David and I withhold 80k BANK each instead of 35k BANK each so we can participate in the tlBANK program. Thank you for the suggestion, we’ll do that. This is a minor change to the numbers and I think worth it so we can demonstrate our continued commitment as DAO Citizens.

As outlined, we expect to execute this on February 29th. We’ll work with DAO personnel to execute test transaction to ensure we’re sending to the right location. :wink:

Appreciate you all.

:black_flag:

12 Likes
12

Tokens can be used in non-(direct)-monetary ways. I point to ConsitutionDAO which after they refunded the whip-around, some people ended up not accepting and repurposed the token for other purposes (if only sentimental). Off top of head, things that can be done with unallocated BANK

  1. like discourse … accumulate small amounts for going through the tutorial (of the social / web interface) and once you reach certain thresholds, unlocks privileges

  2. token gating … so the more BANK you accumulate, the longer your posts stay active (or gets retained by AI as measure of noteworthiness)

  3. gifting as social politeness … much as old knights used to raise visor to signal peacefulness (reduced to salute) you can have the equiv of coffee ($5) or lunch $20 to send to each other as tokens of social gratitude for well-thought out posting or useful links

  4. time-weighted voting on certain matters … people lending BANK is a form of proxy voting to endorse certain positions or policies

  5. staking … have certain amounts to establish a new team or even entire subDAO

2 Likes