Revisiting Gene's Tokenomics Proposal

Hello, @betterfuture here. So I’ve joined the Mars community with a bag and now catching up on community gov! :slight_smile:

And, thought I might reintroduce this proposal written by Gene from 1 year ago, to see if the community has changed its mind about it? I feel that with some tweeks, the proposal might move us forward with the tokenomics, but, I haven’t been here in the community long enough to know the current mood. Would very much appreciate if the community could help me get up to speed on the topic of burning surplus token reserves, and whether something like Gene’s proposal might be viable now?

IMO, the strong rationale for the community to support Gene’s proposal (or one like it) to burn 735M tokens: when investors research a project on Coinmarketcap or CoinGecko and they see a big total supply relative to circulating supply, they can instantly form a rather paranoid view that a project is not trustworthy and could be a candidate for large unlocks, rugs, and dumps, and thus steer clear of investing it, which is a constraint to growth for this fine community. :joy:

GENE’s ORIGINAL PROPOSAL FROM FEB 2023:

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.