Proposal Details

Proposal #519

Rejected

Proposal title

Alternative Signalling Proposal for use of ProtoRev Funds

Submit time

Deposit end time

Voting start time

Voting end time

Tally result

47.53%

Proposal #519 description

This proposal causes 100% of the value gained by ProtoRev to be used to initiate a deflationary burn mechanism while retaining the non-OSMO tokens earned to diversify the community pool.

  • OSMO obtained by Osmosis through the ProtoRev module will be burned.
  • Non-OSMO tokens obtained by Osmosis through the ProtoRev module will be sent to the Community Pool for later use and an equivalent value of OSMO from the Community Pool burned.

Details

OSMO obtained via ProtoRev is effectively burned as long as it does not re-enter circulation. There is however the potential to enter circulating supply and so is not a true deflationary model as the maximum supply remains at 1 billion.

In order to create this burn, Proposal 516 asked that the non-OSMO assets used by the protocol be used to purchase and burn OSMO. While this gives a beneficial effect on supply, it is only around a quarter of the revenue collected through the ProtoRev module at the expense of assets that Osmosis currently has no other method of obtaining without arranging a token swap or purchase through intermediary multisigs.

Non-OSMO tokens have greater flexibility in usage, being able to earn further yield or replace requirements for rental through protocol liquidity or perform community spending without the inflation concerns of using the native token. Therefore it would be best for Osmosis to retain these tokens in the community pool.

As the community pool gains these tokens it no longer requires as many OSMO tokens and so it is an appropriate gesture to burn the corresponding value in OSMO. This burn rate may offset or eventually surpass the replenishment of the Community Pool by inflation and so should be pausable by governance to ensure that a software upgrade is not required to prevent excessive burns of the OSMO in the community pool.

Burning the OSMO remaining in the ProtoRev wallet confirms that it will not re-enter circulation and establishes a deflationary mechanism for Osmosis. This will likely take a long time to become net deflationary, relying both on the thirdening of Osmosis inflation and increased levels of ProtoRev generated, but will grow in efficacy as the network matures.

Commonwealth Thread: https://commonwealth.im/osmosis/discussion/11418-protorev-allocation-june-1st-due-date

Proposal #519 overview

Total votes
3,727
Voters
3,666
Total deposit
1,600 OSMO

Proposal #519 votes

#

Validator

Account Address

Options
1KalpaTechNo
2ChainflowAbstain
3Bro_n_BroNo
4Oni ⛩️No
5[ block pane ]No
60base.vcAbstain
7InteropAbstain
8BlockdaemonNo
9DSRVAbstain
10Chorus OneNo
11OldcatYes
12#decentralizehk - DHK daoAbstain
13ECO Stake 🌱No
14PLEASE REDELEGATE - FlipsideYes
15Swiss StakingNo
16TaxiStakeNo
17Redelegate!Abstain
18ShapeShift DAONo
19CrowdControlNo
20FreshSTAKINGNo
21Ethereal VenturesYes
22Citadel.oneNo
23S16 Research VenturesNo
24blockscapeNo
25StakecitoNo
26Silk NodesNo
27NotionalNo
28Kalia NetworkAbstain
29COSMØSTAKEYes
30B-HarvestAbstain
31ProvalidatorAbstain
32Secure SecretsYes
33Smart Stake 📈📊Abstain
34Cypher CoreAbstain
35Larry EngineerYes
36WhisperNode 🤐Abstain
37Leonoor's CryptomanNo
38SG-1Abstain
39ZenscapeAbstain
40MeriaNo
41jabbeyNo
42The_CyberneticsAbstain
43Uncle EdNo
44PRYZM | StakeDropAbstain
45StakeLab.zoneNo
46Informal SystemsNo
47ChihuahuaNo
48Simply StakingNo
49Stakely.ioNo
50Node GuardiansAbstain
51AUDIT.oneAbstain
52coinhall.orgNo
53MultiplexNo
54Nocturnal LabsAbstain
55StakeWithUsNo
56Stakewolle.com |100% InsuranceNo
5701nodeAbstain
58GATA HUBNo
59Interstellar Lounge 🍸Abstain
60[Beehive]🇰🇷No
61Zero Knowledge Validator (ZKV)Abstain
62CryptoCrew Validators ✅No
63Active NodesNo
64AutoStake 🛡️ Slash ProtectedYes
65Hathor NodeAbstain
66kooltek68Yes
67Chill ValidationYes
68Bi23 LabsNo
69KomikuriAbstain
70AstroquirksYes
71TessellatedNo
72ChainLayerNo
73OmniFlix NetworkAbstain
74Imperator.coNo
75Coinage x DAICAbstain
76Golden Ratio StakingNo
77stake.systems | autocompoundYes
78in3s.comNo With Veto
79PingAbstain
80KingSuperAbstain
81CommunityStakingAbstain
82InterblocYes
83White Marlin StakingYes
84CosmostationAbstain
85Vitwit (Previously Witval)No
86POSTHUMAN 🧬 StakeDropYes
87PRO DelegatorsAbstain
88polkachu.comNo
89Kintsugi NodesNo
90ushakovYes

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