[1IP-3] Formalization: VOTE to make $1INCH deflationary!

Snapshot Proposal

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  • Against the change

0 voters

Stage 1 Post

Summary

Implementing a strong deflationary mechanism to the 1inch token.

Abstract

Removing Single-Asset-Staking & Farming Completely. Replace with a deflationary mechanism.

Motivation

This eliminates sell pressure from the stakers as well, and everybody is incentivised as the supply decreases = more valuable… Holders will be more committed to hold the token, instead of farming/staking and then selling the token, which decreases the value of the token.

Specification

Removing Single-Asset-Staking & Farming Completely. Replace with a mechanism where users stake $1INCH tokens and get incentivised to access governance + instead of receiving rewards, the stakers will collectively help burn $1INCH tokens (deflationary pool). Deflationary pool which users will stake their $1INCH and will determine the burn speed/rate. Essentially the traditional staking rewards will now go into a deflationary pool and get burnt.

Benefits

The main benefit is that the community basically decides the burn rate, the more people who stake $1inch tokens the more it will be deflationary. If in any case, less people stake, the burn rate will slow down significantly, so it’s continuously up to the 1inch holders for it to be as deflationary as they want it. It empowers holders more, and takes rewards away from “whale” holders. It is evident that most people who stake/farm usually dump the token which currently plays a significant role in the tokens value. With this mechanism, you can have the best of both worlds, making it “stake-to-burn” rewards HOLDERS. It encourages more value to the token.

Drawbacks

A potential drawback could be that some people may be upset in regards to removing staking / farming, especially the single asset staking. In the long term this is actually very healthy for the 1inch ecosystem. We need to start building 1inch’s future now. The distribution on 1inch currently in my opinion is successful, very successful in fact. But the staking is really decreasing the token value.

Imagine if it was deflationary but still rewarding holders.

9 Likes

@Radar Farming is for compensating IL

Do you have any data to confirm that Whole Selling Pressure is coming solely from Stakers or LP providers ?

I don’t know what difference burning will provide at this stage as both Burning & Staking goes with same purpose that is Profit & to which Both schemes provide no Guarantee .

I know Burning is Effortless & you can just do it so easily by just putting a code & send it to a black address as BURNING doesn’t even need to do any buyback to initiate

But Current System which is a Buyback system demands more effort from team as it can only generate such buyback if the traded volumes are better .

The Token Burn Topic is so old & rash that it sounds cool only to those who expect only Price Appreciation & nothing else .

INFACT ! you’re not burning the supply evenly, so hodlers are in a strong position while newcomers are forced to buy from an ever diminishing supply, leaving the door open for hodlers to dump their stacks at higher prices. that’s the ponzinomics that’s being talked about here. so yeah, 1INCH is not a ponzi but a buy and burn is ponzinomics.

apart from the fact that burning 1INCH is still a horrible idea for governance reasons. its kind of like getting the keys to a house and then throwing the key away to make your house more exclusive…

When you say Stake to burn . It’s actually not that easy because once you BURN it resonance throughout the whole Supply of the Token
Burning will also help the token holders indirectly but the buyback only benefits the Governance voters that take part in voting .

3 Likes

Staking/farming = freebies

there is over 66k+ wallet holders

Fair distribution phase is well over complete.

It is time to focus on fighting inflation

Then we can focus on incentives such as cheaper trading fees depending on users 1INCH holding

4 Likes

farming is not a freebie & comes at a cost where LP providers face Huge IL
farming provide a compensation to such .

even stakers take risk of loosing valuation of their token they stake in Governance

2 Likes

Inflation ? but isn’t the Total Supply fixed anyway ? i know 4 year token vesting might feel
a bit pressurized

Secondly, buy and burn gives the VC’s you hate so much more power as it leaves less 1INCH on the open market for us, and their proportion of the total will increase and eventually could exceed 50%.

Sure, I’d like the price to go up but never at the cost of ruining decentralisation, allowing the public to have less than a 50% share of the tokens.

Why would you think that burning tokens or distributing them would have a different effect?
Let’s say in a year we have a 10% reward:

If we burn 10% of the token, now each holder (big or small) have 10% more voting power.

If we distribute 10% of the tokens, now each holder (big or small) have 10% more voting power.

It’s the exact same thing, both burning and distributing will reward holders in the long term. It doesn’t matter if you are a big or a small investor.

In Short , burning introduces Ponzinomics concepts to the token functionality.

3 Likes

I stand with Don Yakka’s proposal

Absolutely against this. This is a “BSC Shitcoin” philosophy. You arguments (as stated by other comments) are not technical nor right. And Don, lol, we focus ? we fight ? LOL

1 Like

İnsanin banina herşey gelebilir

Yes, I support this proposal

1 Like

I think all the proposals are good!
First of all, we have a proposal to be voted in the forum, about community incentive and "Introducing Exclusive Trading Incentives - Discounts , Swap Fee & Slippage Subsidies " @Genkai.Shogun; Secondly, let’s discuss how to make progress “Implementing a strong deflationary mechanism to the 1inch token.” @Radar

This makes perfect sense to me. I’d love to see this


But this makes No sense . Are these accounts are even real or just bot spam ?

I’m pretty sure I’m real. I don’t usually sign up to things just to vote and comment but I felt like it today! So I did. True story.

Let’s start!Speak with vote! :face_with_hand_over_mouth:

I believe buy-and-burn is more long-term benefit than buy-and-giveaway to stakers. But this would allow all the token holders benefit, which means lower APY for stakers.

Maybe it is better to have option to vote how many percentages of collected revenue should be burned. But I afraid stakers who vote mostly incentivized to minimized burning, to maximize short-term benefits. Maybe having proper range for voting could help with this, for example allow burn share be in range 25%-100% with default vote 50%

2 Likes

I think buying and burning will add value to 1inch holders.

3 Likes

My suggestion: if the team has a better proposal, it can also be published, discussed and voted.We need every strength! :cowboy_hat_face: :cowboy_hat_face:

1 Like

@Radar Turn the Snapshot on . Now Let’s get over with it shall we

1 Like

The value of any product in this market comes from the quality of its service - not memecoin tokenomics. I see 1Inch as becoming the “Google” of DeX trading. By definition, people with enough money to become whales are interested in long-term prospects and won’t sell for pennies. (You can view whale accounts on the scans right now - they hardly move)

As others have already said, when you take away staking, you’re not hurting the whales, you’re helping them. The value of their tokens will also go up as supply decreases, giving them a more powerful position than just regular staking.

1 Like

@Natalia @Tanz0rz Please share this link on 1inch twitter ,thanks!
https://snapshot.org/#/1inch.eth/proposal/QmU5rSEMyb9qpPqWUoaJBoTiH6XjBknnojUsXirFxeRjHr