I say we do burn tokens after we have stabilized above a certain price threshold. First we have to implement revenue share, then airdrops. Let price stabilize above 50k wmemo for a few weeks, then once price has stabilized began unannounced burns so not to draw in predators. But a full announced burn would attract predatory behavior just like the buybacks did.
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Burns don’t automatically raise coin price, nor do they create an opportunity for instant arbitrage. Stop the buybacks, burn what has already been bought back. That raises Backing per wMEMO. Then implement a profit sharing program such that wMEMO gets a base yield. Distribute the airdrops as planned. Reinvest some of Treasury yield into compounding Treasury for long term growth. Make more, quality, VC investments as was the original plan. We still have the largest DAO Treasury in all of DeFi. Don’t let short term price panic and FUD ruin the possibility for success by squandering Treasury on buybacks now.
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Not entirely sure how you would like to proceed with unannounced burns. Already discussing it here is making it public, you need to consider this forum burnt… Most people here no longer have the project progression and it’s vision in mind rather return of funds and exit.
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Totally agree with your points, but am not sure how you would get this pushed through with this many people interested in pay outs & short term gains, mergers, lost funds being returned, etc.
Most people don’t have or receive financial education and thus are interested in short term gains, hence they panic sell.
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This is a MUST in order to REVIVE the project.
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See jade project who has so small treasury compair to us .they made separate treasurey balance and automatic buy back and fix floor price project has survived this long and holding strong.
I have suggested that in December when forum established.
We still have time to do this thing think about it we still got good investments and treasurey balance.
How it will works
1 . Total no of wmemo gets a fixed floor price which gose only up by treasury profits and fees.
- Floor price amount should store seprate valut which only use for buybacks
3.close all other contracts of time and memo their will be only one contract of wmemo like all other coins
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Dosent need to show higher apy and rebase
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From investment treasury what profit is generates it gose to floor price treasury so every holder gets automatically profit ratio
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We decide ratio of generated treasury profit ratio for how many goes in new investment and how many goes in floor price treasury by vote
Benifit from this
1.every invester gets backing protection
- Protection from big whales
3.every holder gets his share of investment profit confirm
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Distribute buy back memo to holders.
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I agree by burning Time as well as keeping the supply controlled as the price doesn’t tank to quick.
Burning controlled rates would maintain a healthy sustainable APY until we make the progression towards a new improved formula.
These are good baby steps that we need on short term
Rather than simply burning, I would like to see an RFC for inverse bonding, similar to what’s been proposed in OHM: Inverse Bonds - Olympus (olympusdao.finance)
Burning WMEMO/MEMO/TIME in the Treasury is something that stops distortion in the market capitalization and the treasury values. A good percentage sitting in the treasury (besides, say 25 million USD worth, that is in the WMEMO/MIM Sushi pool and some extra) - and while this is trading below backing is best to be burned.
While these treasury holdings of WMEMO/MEMO/TIME can be sold if the price goes above backing, this really puts a cap on the price action of the tokens, and I’d think that price appreciation of the token is more important the treasury being able to resell these tokens on the open market.
No time to read? Here’s a full-length reading of this RFC: Wonderland Proposal To Burn wMEMO Tokens [RFC] Full-Length Reading - Tokenomics Crypto Token Supply - YouTube Trying to make info on Wonderland easily accessible. Let me know if you think this is helpful.
@Ponzi - if you find this helpful, please link at the top.
Thanks for this proposal and discussion!
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Could we get a tokenomics expert to present some math and considerations around a possible token burn, what impact it might have in different ways, hidden aspects and considerations that may not be obvious? I think there are probably quite a few people that don’t fully understand the implications of token burning (including myself), there also seem to be conflicting statements in the comments, and it would be helpful to get everyone on the same page first before putting this up for vote.
But definitely an interesting concept that’s worth discussing further. Thanks for the proposal!
Burning Time and Wmemo supply this can be only beneficial for the project
Yes, I agree a burning system must be implemented. I also STRONGLY believe this should be done strategically, possibly before or at the beginning of the next bullrun to GET AN EDGE for all of us.
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I think a lot of people still grappling with the basics of tokenomic (or even economic theories in general). Here’s a medium link for a quick education >> Token Supply 101: Fundamentals of token supply — and monetary policy | by Adrien Be. | Medium
Meantime, let me summarize a few things. But please correct me if I’m wrong anywhere below:-
- Price of a token is only affected by supply (and demand) of the tokens IN CIRCULATION.
- Token in circulation means tokens made available for trading. That includes:-
a. No of tokens paired in Liquidity Pools (e.g. sushiswap), ready to be traded,
b. Tokens given to holders via staking, minting or airdrops. - Tokens not in circulation mean nothing because they do not affect the price of the token. That includes:-
a. Tokens in Wonderland Treasury, BUT ONLY if these tokens are considered “out-of-circulation”. However, if these tokens can be used (or going to be used) to buy other tokens in the market or to be given to holders, then these tokens are not considered out-of-circulation
b. Tokens in any “burnt” address. BURNT ADDRESS is an address in the blockchain where wmemo in circulation can be dumped in a “one-way” method (can dump in but cannot be taken out). This should be clearly hardcoded in the protocol smart contract.
So, having known all these, let’s understand a few more facts:-
- TIME/MEMO/WMEMO can no longer be minted, meaning TIME/MEMO/WMEMO has reached its capped supply (for now)
- When wonderland treasury buys back wmemo from the market, price of WMEMO does go up. But that does not mean it will stay up (at backing price). Any current big bag holder (a whale or a bunch of trading bots) can sell WMEMO in bulk and put WMEMO price way below backing price again.
- In addition, this whale/bunch of trading bot can setup a money-making machine by keep buying back WMEMO in bulk way below backing price and dump them back once wonderland treasury buy back WMEMO to backing price.
- As of now, Wonderland does not have anti-bot/anti-whale mechanism to stop this. That is why wonderland team has stopped buy back for now.
- We can stop the “money-making strategy” mentioned above (over time) by not introducing the bought token (by treasury) back to the market. If we do this, slowly slippage in trading WMEMO will become too big and not worth it for whales/bots to continue this “money-making strategy”.
- “Burning” bought tokens does not immediately increase WMEMO price. It only reduces the circulating supply. But, any buying action will now increase the price by an increased factor (due to a more limited supply). Meaning, we should combine the strategy of partial burning and attracting new investors if we want to increase WMEMO price.
So having all the things above, I agree to all suggestions that promotes:-
- Buying back WMEMO from market to bring back price to backing BUT DONT INTRODUCE bought tokens back to market. So, any suggestion to “mine/stake” these bought token, or even airdrop to holders are good for me. But make it into a form that’s attractive to new investors.
- Partially/periodically burn WMEMO bought below backing price to continually limit supply when price becomes inflationary. Any good protocol out there has this mechanism.
IMHO that’s why nodes and daily ROI protocols are getting more popularity nowadays due to the mechanisms that lock stakings, prevent pump and dump and control supply via dynamic emission.
Thanks for reading.
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Congratulations I finally read something that makes sense like 100IQ or above as I kinda driving myself mad to explain the importance of this mechanism.
We need to push this forward as is truly the key the solution that would fix Wonderland without scrapping the whole lot or implementing shaddy ideas like Wonderland 2 or Professor.
What we need is the right strategy.
I wish other people agree with this proposal this is exactly the problem we had .
Burning mechanism is always better for the long run of the project
Why the Bitcoin is the digital gold? Because it was designed to be scarce.
Scarcity will increase the value in Time…by increasing the interest versus low supply and higher and higher demand.
Wonderland promised to keep the APY at least 1 year this is the main promise and rewards for early adopters.
As no one said that how bad is to mine 100 BTC in the early days when Satoshi was around ok they realised later and the protocol became scarce.
We need to do this gradually obviously reduccing the APY after we stabilise the supply.
Now all buys backs should be burnt? What about the liquidity? This is the main question?no this liquidity must be transfered towards other pools.
What’s best is locking the buys under the backing price.
Backing price must be held secret why?
The 
would work harder to adjust them boots let the market to take its natural course.
After this preliminary period yes we can implement more bussines model.
Now no one mentioned about automated protocols as decisions must be taken into the protocol and not into the hands of people otherwise you became a security and there’s SEC like coyotes smelling our 700 millions still from 1.2 bn wasted on useless buy backs that shouldn’t happen .
Yes node model is what we need not Wonderland 2 or Professor which they don’t have nothing to do with crypto. The profit share is ok but scarpping the APY with this would benefit 1.7% of investors.
The rest of 98.3% we must weak up and put this on the snapshot and voting fuck yes for this one
Sounds good and solid idea, lets promote it!
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Commenting to give some new life to this RFC. It seems that most of us understand that Burning doesn’t have the effects some people think it does.
Instead the TM should hold the bought-back wMemo for future capital raising AND airdrop to reward long-term holders. Maybe distribute 10-20% of the bought back wMemo to long-term holders? Perhaps we need a new proposal. Or a refresh of this RFC with new options. Airdrops seem to be a really popular idea.
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I think a restart of this proposal might be worth it. After the RQ burn a lot of people realized that burning tokens doesn’t make us moon.
Burning to increase backing isn’t really necessary since the token in the treasury are not counted as part of the circulating supply.
It’s more a question of what should we do with the tokens (if anything) ?
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