News
Have DAO decide what to do with 25% of LSK supply
The Lisk community will soon have to decide whether to burn 100 million LSK tokens as the 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, representing 25% of the total LSK supply, or allocate these tokens to 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 Optimism Superchain to reduce access to network products in the Ethereum ecosystem.
If the community votes to burn the tokens, the total supply of LSK will decrease to 300 million tokens from the current 400 million. Instead, if the community chooses to allocate the tokens, they will be invested in the Lisk DAO Fund from 2027 to 2033 to allow the community to “drive initiatives, support growth campaigns, and fund innovative projects over the next decade,” according to the report. Press release.
Lisk project manager Dominic Schwenter stressed that the Onchain Foundation (formerly Lisk Foundation) will not participate in the vote “to ensure fair and community-focused decision-making.”
Launched in 2016, Lisk first revealed its migration plans in late 2023. The team stated at the time in a blog post that the decision was driven by the need to “update” the Lisk ecosystem and make the network, initially designed as a tier 1 chain, more “affordable for users and developers”.