Improve MARS Tokenomics

Proposals Discussions
1

Introduction: The MARS protocol has a total supply of 1 billion MARS tokens, with 300 million tokens reserved for the MARS team, and over 600 million tokens allocated to community pools. While the protocol has just started, it is essential to adjust its tokenomics to promote long-term growth in line with current market trends. The current market conditions favor a small token supply with reasonable emissions. Therefore, I propose reducing the total supply, decreasing the team’s token allocation, and reducing the community pool allocation to improve the tokenomics of MARS and promote sustainable growth.

Proposal: To improve the tokenomics of MARS, I propose the following changes:

  1. Reduce the total supply of MARS tokens: The current total supply of 1 billion MARS tokens is too large and could lead to dilution of the token value. Therefore, I propose reducing the total supply by 735 million MARS tokens, making the total supply approximately 265 million MARS tokens.
  2. Decrease the team’s token allocation: The allocation of 300 million MARS tokens to the MARS team is excessive and could lead to potential market manipulation. Therefore, I propose reducing the team’s token allocation to 65 million MARS tokens, matching the airdropped supply 1:1, which would still be a significant supply.
  3. Reduce the community pool allocation: The current community pool allocation is 600+ million MARS tokens, which is excessive. Therefore, I propose reducing the community pool allocation to 100 million MARS tokens, providing enough for community participation.
  4. Burn excess tokens: To further improve the tokenomics of MARS, I propose burning a total of 735 million MARS tokens. 235 million tokens will be burned from the MARS team’s allocation, and 500 million tokens will be burned from the community pool allocation.

Conclusion: The proposed changes to the MARS tokenomics will promote long-term growth and increase investor interest. Reducing the total supply, team allocation, and community pool allocation, along with burning excess tokens, will ensure that the MARS token retains its value and is not subject to inflationary pressures. These changes will benefit the MARS community as a whole, promoting sustainable growth of the protocol.

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Appreciate the effort in putting this up for discussion. However I don’t see how decreasing a protocol’s treasury/community pool is beneficial to anyone except short-term holders.

Not to mention slashing contributors building the protocol

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3

Interesting proposal. Agree with Sage that this would only benefit short-term holders. The current gov token plan has been in place since before the protocol’s launch on Terra Classic, and the builder lockup was recently extended. I feel like the focus should be on deploying rovers and growing TVL/functionality on Mars.

2 Likes
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While I agree burning 75% of treasury and slashing contributors would be an effective way to reduce emissions, I disagree that this would benefit the health and growth of the protocol long term.

I think it’s important to note that the community pool / treasury does not have to be spent, but can be very valuable for growing the adoption and growth of the protocol as needed. Ideally, I think we should only spend treasury tokens where the distribution of them results in a net benefit for holders in the long term.

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If the Community Pool is not meant to be in circulation for a while, then we should communicate this clearly to the community, it is after-all 60% of the supply.

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I see this as benefiting the most shorterm holders rather than incentivizing long term growth. Which is achieved by keeping on innovating and building. Slashing the community pool and contributors allocation might have the opposite effect.