In January a proposal was introduced to implement a burn mechanism for wMEMO tokens.
While it had been put on ice due to everything that happened with Wonderland since, the proposal did gather community support.
Therefore, it is being moved to WIP for the DAO’s consideration.
Define how wMEMO acquired through buyback as well as the other TIME, MEMO and wMEMO is the treasury should be handled.
During the Rage Quit period, wMEMO tokens exchanged through the portal were sent to a dead contract effectively “burning” the tokens.
Those can be find here:
Buybacks & remaining tokens
A similar process can be followed when doing buybacks or to burn the TIME/MEMO/wMEMO in the treasury.
The same dead address can be use to send wMEMO tokens to this address that has been bought back, which includes nearly 5,700 wMEMO in Treasury on Avalanche alone, and close to 2 000 000 TIME/MEMO.
This does create a bit of distortion in the market capitalization and calculation for the backing price without adjustments being made in such calculations. Burning the tokens would remove the need to do these adjustments.
The current need for wMEMO is for protocol owned liquidity (POL) and some buffer for the future.
The following amounts are being suggested:
Protocol Liquidity: 200 wMEMO
Reserve: 500 wMEMO
Given wMEMO is multichain, POL on every chains will be managed and prioritized accordingly.
Other wMEMO, MEMO, TIME in the treasury will also be sent to the burn contract above as a matter of housekeeping.
This would required the Treasury Manager to send the tokens to the burn contract and consult with the core team on potential future need and/or technical requirements.