Following discussions among the Spool DAO, a series of options were put forward in a voting proposal to improve SPOOL tokenomics and team incentives.
DeFi is a rapidly moving ecosystem, and as we move towards the launch of Spool V2, it is important that Spool keeps pace with the iterations found in other projects.
These four options (plus a fifth option of not burning any tokens and not creating new team incentives) were designed to improve the Spool ecosystem, ensuring long-term success and sustainability. They have now been voted on by the Spool DAO members as part of their governance role, with a simple majority (at least 50% of votes) used to decide which option was implemented.
Option 1: Reduce SPOOL supply by burning 80 million tokens
With the current supply of SPOOL tokens at 210,000,000 and a significant portion lying unused in the treasury, the first proposal sought to burn:
- 60.4 million treasury tokens
- 14 million builders’ tokens
- 5.6 million preDAO tokens.
This would reduce the total supply to 130 million SPOOL, addressing concerns of oversupply and the lack of use for these excess tokens.
Option 2: Option 1 but retain 10 million SPOOL for future team incentives
Option 2 recognised the evolving nature of the project and, in particular, the development and impending launch of Spool V2. As such, it is the same as Option 1 but with the addition of retaining 10 million SPOOL tokens from the Treasury portion of the burn to incentivise core team members with vested SPOOL tokens.
This would ensure that new leadership hires and existing team members whose roles have expanded are properly rewarded and motivated to work towards the success of the Spool DAO.
The total supply, after the implementation of Option 2, would be 140 million SPOOL.
Option 3: Burn 60 million SPOOL tokens purely from the treasury supply
This is similar in approach to Option 1, but removes the Builders’ and preDAO tokens from the Burn, reducing the total SPOOL token supply to 150 million. The primary goal of this approach is to gain the benefit of the burn process without negatively penalising early investors or team members.
Option 4: Option 3 but retain 10 Million SPOOL for future team incentives
This proposal acts the same as Option 3 but with the addition of retaining 10 million SPOOL tokens from the token burn to incentivise core team members with vested SPOOL tokens.
This would create a burn amount of 50 million SPOOL tokens (instead of 60 Million) making the new total supply 160 million SPOOL.
Results
Option 2 — To reduce the supply by burning a combination of Treasury, Builders’, and preDAO members’ tokens while retaining 10 million for Team incentives has been chosen by the DAO as the model to be implemented.
This proposal and the voting by the Spool DAO demonstrates the willingness of the Builders and Founding Contributors to remove a significant portion of their own holdings in order to maintain the decentralisation of the protocol and help Spool DAO continue to develop.
To read the proposals in full and see the voting results you can view the snapshot here.
______________________
Spool is a permissionless DeFi platform that connects Capital Aggregators with DeFi Yield Generators. Funds are dynamically and efficiently allocated to ensure optimized yields, for custom strategies, managed by DAO-curated Risk Models.
Spool was established as a DAO, with a selection of founding contributors representing a diverse cross-section of the blockchain community.
Website | Telegram Ann | Twitter | Medium | Discord
