- Introduce a token burn mechanism (burns treasury wMEMO, obtained from price floor buybacks)
- Make no changes
[RFC] - Proposal to burn $wMemo Tokens
Introduce a wMEMO token burn mechanism to increase $wMemo price / treasury backing price and to increase wMemo holders’ market share after the burn.
Proposal to burn $wMemo Tokens
The goal of this RFC is to develop a WIP on burning wMEMO.
Introduce burning mechanism to establish the source of wMEMO to be burned.
Discuss and pick a burning schedule
If necessary adjust the burning mechanism before moving to a WIP.
Wonderland’s wMEMO token are backed by treasury assets. This creates a minimum backed price of wMEMO. If the token falls below this price, the treasury starts buying back wMEMO, protecting the price floor from dropping severely below the treasury backing.
A price floor burn would periodically burn the wMEMO which have been bought back from the open market, according to the burn schedule.
Discuss and vote on a burn schedule:
- Annual Burn Schedule
- Periodic Burn Schedule
- Initial+periodic burn
The total amount of wMEMO that is eligible to be burned from price floor maintenance will be calculated.
Afterwards a 12 month burn schedule will be created with the option of quarterly changes.
A threshold will be determined which once its met, allows the treasurer to burn wMEMO tokens.
This burn schedule will start off with an initial burn of the wMEMO received from maintaining the backing price. Afterwards periodic burns of wMEMO received from protecting the backing price will be performed at the discretion of the treasurer.