Governance Proposal: Burn DEV
A Fair Launch
Dev Protocol launched the DEV token in the early 2020. The fair launch was kickstarted with an airdrop to Creators, Open Source Software developers, with no allocations made to investors. Since then the DEV token has been mined by early Patrons supporting
We are expanding the concept of a Fair Launch by allowing Patrons, staking DEV tokens on Stakes.Social, to vote on the DEV token’s supply and allocation. There are three proposals for the Dev Protocol community to vote on: 3.5M DEV Burn, 1.5M DEV Burn, and No Burn. This article will detail each proposal, how to vote, and how the chosen allocation will be carried out.
Stake Social’s APY is calculated based on the Creators onboarded, which produce inflation, and percentage of DEV staked, which lowers inflation. Therefore, if a burn proposal is passed then there will be a higher percentage of DEV stake hence lowering the APY. To counter this, if a burn proposal is chosen then the inflation per Creator will be increased to meet the same APY pre-burn. This will increase the inflation per year for the burn proposals to a negligible amount which will be detailed in each proposal.
Proposal One: Burn 3.5M DEV Tokens
Burn 3.5 Million DEV tokens. As the aggregate supply decreases with the burn, the staking rate increases relatively, and the inflation rate and staking APY decrease. Therefore, we’ll update the Policy contract to match the APY to the current APY. This will involve updating the variable of the current Policy contract 0.00012 DEV per block to 0.000132 DEV per block (inflation per Creator).
Proposal One: Overview
Proposal One: DEV Distribution
Proposal One: Effects on Stakes.Social
Proposal Two: Burn 1.5M DEV Tokens
Burn 1.5 Million DEV tokens. As the aggregate supply decreases with the burn, the staking rate increases relatively, and the inflation rate and staking APY decrease. Therefore, we’ll update the Policy contract to match the APY to the current APY. This will involve updating the variable of the current Policy contract 0.00012 DEV per block to 0.000124 DEV per block (inflation per Creator).
Proposal Two: Overview
Proposal Two: DEV Distribution
Proposal Two: Effects on Stakes.Social
Proposal Three: No Token Burn
Instead of a burn this proposal provides more funds to the Ecosystem Fund relative to the other two options. Since there is no burn there is no change in Stake Social’s APY. Therefore, the Policy contract is not updated either. This proposal has the lowest circulating supply and inflation rate of all three.
Proposal Three: Overview
Proposal Three: DEV Distribution
Proposal Three: Effects on Stakes.Social
How to Vote
- Go to the Dev Protocol Voting Portal and connect your wallet.
https://govern.devprotocol.xyz/ - Allocate your votes based on your preferences. Each allocation must be entered as a percent (%) with the minimum being 0% and the maximum being 99% because you must enter different values for all 3 options.
- Click “Vote” to submit your preferences.
Voting method
Borda Count is a single winner election that allows voters to rank their preference. Patrons will receive votes directly proportional to your DEV staked. Voters can rank their preferred allocation from 1 - 3 with 1 being their most preferred allocation. The Borda Count is calculated by multiplying the number of votes obtained by the following coefficients.
How Winner is Decided
The Proposal with the highest number of votes at 10 AM UTC on April 6th, 2021 will be determined as the winner.
