Further Adjustments to Discount and Burn Rate

The current discount rate starts at a base rate of 3%. Slippage and gas fees means that 3% is not enough to cover costs. Thus the base rate should begin at 5% + 5% daily discount bonus.

The amount of USD that can be burned Daily should be increased by 2x at minimum. The issue w/this current supply limit is the daily Max limit of USD IS BEING BURNED!! However, once it reaches max supply burnt, there is no further incentive to buy and burn more tokens until the next rebase. I see no good reason not to increase the burn limit.


Share holder rights

An amendment to the seigniorage share protocol needs to be made.

Share holders should get first access to Burn USD for Shares.

And possibly, you can only burn up to 10x supply of what you have in relation to Shares.

Example, I own 10 shares = I have the right to burn 1000 USD.

This gives more rights to shares and people within this community should be given that right to burn first.

Also creates more skin in the game, prevents outside botters from claiming the benefits, and can allow for more people to get access to burn.


On another note, to further incentivize Share liquidity, would it be possible to implement some kind of vesting schedule where Share LPs receive 10~50% of the USD that’s supposed to be burnt? What are the arguments against this?

The fact there is not backlog of USD to be burn is a sign that the discount rate is fine. Same for the bonus. It’s working so let’s not change that.

On the topic of burning more USD (therefore decreasing the rebase lag), it might be a good idea. The 2x rebase is already a voted step toward that.

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The discount works because of the higher discount rate per day. Just pointing out that the base rate of 3% makes the arbitrager lose money to slippage and gas fees, further discouraging buying and burning of USD. A 5% base rate would be more correct.

Yeah agree w/the 2x rebase a day, but I get the feeling even then, supply limit for burning should still be increased.