Burn or Allocate to DAO Fund: We're Inviting the Lisk Community to Decide the Fate of 100 Million LSK Tokens!
N.B: Update on the 100 Million LSK DAO Proposal 🚨
We’ve heard the feedback from our community on the upcoming vote for the 100 million LSK proposal, originally set for the end of September 2024.
Following community discussions and suggestions from a forum post by one of our delegates, and based on the strong support to postpone the vote, we’ve decided to move the vote to July 1, 2025. Participation from our community in these key decisions is important to us and we look forward to continued discussions and input as we shape the future of Lisk together.
We are announcing the date of a significant community vote for whether to keep or burn 100 million LSK tokens, representing 25% of the total capped supply of 400m. This community vote will offer our community a major opportunity to influence the strategic direction of the Lisk project through the newly launched Lisk DAO.
That's it! As planned in our blog article about the migration of the LSK to an ERC-20 token, we've saved the date for our community to determine the fate of 100 million LSK tokens, representing 25% of our total capped supply of 400 million.
Scheduled to take place on September 24 and run for a period of 7 days until October 1st on the new Lisk DAO, this vote will give our community a significant opportunity to shape the strategic direction of Lisk.
This vote underscores our commitment to decentralization and community governance, providing you, our token holders, with a direct voice in our common future.
Understanding the Voting Outcomes
Outcome 1: Community votes for burning the tokens
If the proposal is approved, the 100 million LSK tokens will be permanently removed from the total supply. This action would reduce the overall LSK token supply by 25%, bringing it down to a total of 300 million tokens, but it would significantly diminish the power of the DAO.
Outcome 2: Community votes against burning the tokens
If the proposal is rejected, the 100 million LSK tokens will be kept in the Lisk DAO Fund. These tokens will then be vested into the fund from 2027 to 2033, with 15 million LSK tokens distributed annually for six years, followed by 10 million in the seventh year.
This funding would tremendously empower the community to drive its own initiatives, support growth campaigns, and finance innovative projects over the next decade.
The DAO Fund, set to serve as a significant resource for the community, enabling members to propose and vote on various programs and opportunities that align with the strategic goals of the Lisk ecosystem, would hold great capacities.
Outcome 3: Quorum isn’t reached
In case the quorum for the proposal isn’t reached, no final decision is made. The proposal will be resubmitted after some time, until it reaches the quorum.
Which Option to Choose? The Choice Is Yours
Both options present distinct paths for the future of the Lisk project, and this vote is a testament to our commitment to community-driven governance. Your participation is crucial in deciding how we move forward, and we encourage all LSK token holders to take part in this significant decision-making process.
To ensure a fair and community-focused decision-making process, the Onchain Foundation will not participate in the vote. We believe this empowers our community members to have the final say in how these tokens are utilized.
We thank you for being an integral part of the Lisk community. Your voice matters, and we look forward to your participation in shaping the future of Lisk!