crypto.news
The Lisk community will soon have to decide whether it should burn 100 million LSK tokens as its first major vote for a newly-formed decentralized organization.
Starting September 27, the Lisk community will have seven days to vote on whether to burn 100 million LSK tokens, which represents 25% of the total LSK supply or allocate these tokens for community incentives until 2033.
In a press release shared with crypto.news, the Lisk team says this will be the “first major vote” of the newly-formed decentralized autonomous organization Lisk DAO, which recently migrated to the Optimism Superchain to lower access to the network’s products across the Ethereum ecosystem.
If the community votes to burn the tokens, the total LSK supply will decrease to 300 million tokens from the current 400 million mark. Conversely, if the community chooses to allocate the tokens, they will be vested into the Lisk DAO Fund from 2027 – 2033 to enable the community to “drive initiatives, support growth campaigns, and finance innovative projects over the next decade,” according to the press release.
Lisk’s chief project officer, Dominic Schwenter, emphasized that the Onchain Foundation (formerly Lisk Foundation) will not participate in the vote “to ensure a fair and community-focused decision-making process.”
Launched back in 2016, Lisk first unveiled its migration plans in late 2023. The team said at the time in a blog post that the decision was driven by the necessity “to upgrade” the Lisk ecosystem and make the network, which was initially designed as a layer-1 chain, to be more “cost-effective for users and developers.”