[RFC-9] Token Burn per Charitable Donation

Summary

This intention of this proposal is to simultaneously benefit POP token holders and charitable organizations by burning an equivalent amount of donated POP each time PopcornDAO distributes grants or charitable donations.

Desired outcomes:

  • Incentivize charitable giving
  • Incentivize token burning
  • Optimize token economics to be more mission aligned with funding public goods

Motivation

Token burning removes future coins from circulation, permanently decreasing the overall supply of the cryptocurrency. This helps to increase scarcity and raise the value of each remaining coin, which theoretically will result in a more attractive market to onboard new users. Aligning charitable giving with burning creates more value for all POP holders and further aligns Popcorn stakeholder incentives.

Strategy/Approach

  • Implement functionality proposed in PIP-8
  • Submit tx to Aragon treasury to burn POP per charitable donation from PopcornDAO
  • Prepare marketing strategy to cheerlead donation and burn
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I can support this. I would add that we should be prepared to evolve this approach when charitable donations increase over time. It might be helpful to tap the PopStars working groups to start in-depth tokenomics research.

Below is an article I referred to previously outlining Maker’s burn and buyback scheme. POP buyback seems like it could be another idea for having scheduled ways of POP holders to liquify their holding if they are in need of cash.

We can strive to build an automated and decentralized mechanism depending on the increase of frequency of donations. I think for the sake of speed, a manual burn will suffice for now.

I’m definitely a fan of the perpetual burn. When we see more volume, it’s definitely a great way to alleviate weak hands and create constant buying pressure.

This is a no brainer and will generate a lot of interest in POP once the market discovers total supply of 99,999,700 tokens :eyes:

More users => more fee generation
More fees => more grants
More grants => more burn

I agree that this is a good idea, that could incentivize beneficiaries/Popcorn users to care more about the donations. I also think that more avenues like buybacks should be evaluated and we need to think about the details for a potential burn (if 1:1 can really be sustained long term, etc.)

We can do an equivalent Donate/Burn/Buyback for a limited time so we don’t go overboard. Perhaps even adjust the multiples for burn and buyback based on amount donated.

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