The Lisk community stands at a pivotal juncture, poised to cast a historic vote that could lead to the incineration of 100 million LSK tokens. This monumental decision is set to unfold as the first significant act of governance by the newly established decentralized entity.
From the onset of September 27, a seven-day window will open for the community to deliberate on the fate of 100 million LSK tokens, a substantial quarter of the entire token supply. The options laid before them are stark: to either obliterate these tokens or earmark them for community incentives stretching to the year 2033.
In an announcement disseminated to crypto.news, the Lisk collective has declared this upcoming vote as a defining moment for the Lisk DAO, which has recently transitioned to the Optimism Superchain. This strategic move is aimed at broadening the accessibility of the network’s offerings within the Ethereum ecosystem.
Should the community opt for the token burn, the aggregate LSK supply would contract to 300 million, a reduction from the present tally of 400 million. In contrast, a decision to allocate the tokens would see them infused into the Lisk DAO Fund over the period from 2027 to 2033. This would empower the community to spearhead initiatives, bolster growth campaigns, and underwrite pioneering projects for the forthcoming decade, as per the press release.
Dominic Schwenter, the Chief Project Officer of Lisk, has underscored the Onchain Foundation’s (previously known as the Lisk Foundation) abstention from the vote. This move is intended to guarantee an equitable and community-centric decision-making process.
Tracing its origins to 2016, Lisk made public its migration intentions in the latter part of 2023. A blog post from that period reveals that the impetus behind this decision was the imperative to enhance the Lisk ecosystem and render the network, originally conceived as a layer-1 chain, more economically viable for its users and developers.
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The Lisk platform has captured the community’s interest with a notable 51% surge in price.