SIP-006: Proposed STFX Token Burn

General
1

The STFX-ETH pool is slated to be reduced by 25% across the Ethereum Mainnet and Arbitrum chains, following the unanimous approval of SIP-005. Governance must now ratify a decision as to how these tokens will be repurposed, following their removal from the pool.

SIP-006 will outline an immediate strategy for the STFX tokens, while a future SIP will deliver a proposal for repurposing the ETH liquidity. The two are being conducted as independent governance proposals, given that the repurposing of ETH liquidity will likely be more contentious, and require significantly more time and iteration to reach a solution.

For STFX tokens, there are two relevant options:

  1. Burn the STFX
  2. Deliver it back to the community treasury

There have been very few community-related token initiatives to date, and the commencement of liquidity programs has yet to ensue, so both the DAO Treasury and Community Incentives pool are massively capitalized with $STFX. Redirecting to either pile seems to add little value, whereas burning would contribute toward deflationary momentum. Therefore, we propose burning the $STFX tokens removed from the liquidity pool.

3 Likes
2

I honestly like both options. So may be 50/50 (burn half and send half to community treasury) in that case would be the best scenario.

3

let it burn :fire: :fire: :fire: get your marshmallows out

4

I am also in favor of burning the tokens

5

Definitely burn!!! :fire:

6

I think burning is the better option.

1 Like
7

:fire::fire::fire::fire::fire::fire::fire::fire::fire::fire::fire::fire::fire::fire::fire::fire::fire::fire::fire::fire::fire::fire::fire::fire::fire::fire::fire::fire::fire::fire::fire::fire::fire::fire::fire::fire::fire::fire::fire::fire::fire::fire::fire::fire::fire::fire::fire:
burn it down baby!!!

8

Burn 100% would be the best option for current holders/investors.

9

My view would be that the tokens should be burnt in order to deliver value back to investors.

As for the remaining ETH, my suggestion would be to use this to buyback STFX tokens from the pool on a TWAP basis and also burn these, especially given the low prices of alts at the moment.

1 Like
10

I think the remaining ETH should go to the “Aliens” STFX trading account. Convert the ETH to USDC and Bridge it to $ARB. Then the STFX Aliens account could invest in STVs. Overtime create a selective process so the Alien is investing in credible vault managers. Use the profits from the Aliens account to buy $STFX and burn it. You could also use it to do a giveaway to a random member invested in the vault. Create a board of 3 people who make decisions on the Alien account in which they decide to buy STFX for profit or hold the profits if the overall trading account is down from lost trades. They hope would be to create a stable account size over time while consistently burning STFX and rewarding good managers with a boost in vault funds.

2 Likes