Proposal to make $1INCH deflationary

Stage 2 proposal created HERE

Hello fellow 1INCH supporters, and welcome to my thread.

I’d like to discuss a potential proposal in regards to the $1INCH ecosystem, please share your thoughts and feel free to add your opinion in this thread. I have provided two options so far, of how a deflationary mechanism can be implemented into the ecosystem

A) When user un-stakes from a pool, 1% of its rewards get burnt.

B ) Removing Single-Asset-Staking & Farming Completely. Replace with a mechanism where users stake $1INCH tokens and get incentivized to access governance + instead of receiving rewards, the stakers will collectively help burn $1INCH tokens (delfationary 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. This eliminates sell pressure from the stakers as well, and everybody is incentivized as the supply decreases = more valuable

I personally, am keen on option B. I think it will be great for the future of $1INCH and actually more rewarding for long term holders. I believe making $1INCH deflationary can add tremendous value to its token.

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i like it and I think it will be great

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Awesome idea and seems generally better for the health of the entire project and community! Less of a worry for impermanent loss too. Just to play devils advocate here though, would this benefit early stakers the most, somewhat disinsentivising it further along the line for newer investors?

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for option B i don’t see how it will be disinsentivising new investors. If anything this eliminates all sell pressure from farming and staking, because the only incentive now would be that the total rewards get burnt… So in theory the more adoption 1inch gets, and the more people who stake, the bigger the burn would be. Simply instead of rewards getting distributed to the holders, the rewards get burnt! At the end of the day this would make the token more valuable, and since farming/staking is basically utilised to make more money, this is another way to make more money but better in my opinion, as you are incentivised to hold.

Also, its important to note that this is a great way to make a community stronger because the more people that would stake = the bigger the burn would be. So I think its actually incentivising everybody, no matter what stage you join the 1inch ecosystem. Simply collectively all stake, and rewards get sent to the “deflationary pool” to get burnt.

So there has been times where rewards were distributed over $1M USD. Imagine this getting burnt, instead of distributing to the stakers. At the end of the day most, not all but most will swap the reward for a stablecoin, which actually can cause constant sell pressure.

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Hey @Radar thanks for creating the discussion of it . Good to see such discussions

Here I’d like to add a point as most of users are in favor of burning the 1inch tokens to which the founders replied that it wasn’t done solely for a Fair Distribution among the 1inch stakers before they reach Full DAO later this year !

Anton in Last AMA explained the exact reason why they didn’t considered burning event


Also IMO instead of just Sole burning of 1inch Tokens it’ll be better to put a Robust usecase along side with it to take advantage . Sole burning is still debatable as if will that create any value to 1inch ecosystem or not as it is no guarantee but putting a feature that will accompany it will be even better & more sustainable because Whether it’s a Burn , Lock - in , Buy-Back all of them have their own Pros & Cons !

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Appreciate you getting involved in my discussion @Genkai.Shogun. Thank you for your suggestion… I do also believe adding more usecases to 1inch would be awesome, especially linking it with a deflationary mechanism.

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Thanks for the proposal! we need everything good for 1inch.let’t vote first!

btw i always support you!

I think: burning may be unfair to 1.5 billion 1inch tokens. So the founder don’t think about it. But we can add 1inch extra function, such as EOS memory space, KSM Card slot , or NFT handling fee like AXS, or provided by the team to use arbitrage robot.

I actually prefer the original setup regarding tokenomics. For me, staking is great because I get an APY based on how many people trade this up-and-coming exchange. I’m already more than willing to hold until this gets really big. LP, Farming, Staking & Governance all provide a lot of utility for the token, and should continually attract new investors.
I’d be in favor of this once the total supply is released by 2025. We’d have graduated beyond staking by then, and long-term holders can benefit off the slow burn well into the future.

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when 2025, maybe this project is … So pay attention now! Only staking is thin and apy is so low, we need change!

We have community motivation, so we can discuss the use of community owned 1inch first!

I 100% agree with Radar, and (B)

Becoming deflationary is very healthy for price in short and long term!
This is a experiment and the way the model is for (B) it can be changed at any time after if the experiment was not successful, I would prefer looking at ways of increasing the value of 1INCH by scarcity compared to inflation models as that is not healthy for the long or short term

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