LSDx Token Destruction Proposal Goes for Voting: VELSD Holders Have the Power to Decide

On April 17th, it was announced that the token destruction proposal released by LSDx Finance, a full LSD ultra liquidity agreement, has been opened for voting. The proposal proposes token destruction to strike a balance between protecting the interests of current token holders and ensuring sustainable emission rates for future growth. It includes four options: destroying 500 million tokens, destroying 300 million tokens, destroying 200 million tokens, and not destroying tokens. VELSD holders can vote.

The token destruction proposal released by LSDx Finance has been opened for voting

On the 17th of April, the LSDx Finance community released a token destruction proposal for voting. As a full LSD ultra liquidity agreement, the proposal aims to strike a balance between protecting the interests of present token holders and ensuring sustainable emission rates for future growth. VELSD token holders have the power to decide, as the proposal includes four options: destroying 500 million tokens, destroying 300 million tokens, destroying 200 million tokens, and not destroying any tokens.

The Proposal: Token Destruction for Balance

The LSDx Finance community recognized the need to balance the interests of present and future token holders. As such, they introduced the token destruction proposal to lessen the supply of VELSD in circulation. Through token burning, the value of the remaining VELSD tokens increases. To understand this, let’s take a look at the current circulating supply of VELSD tokens.

The Current Circulating Supply of VELSD Tokens

As of April 21st, 2021, there are approximately 1.6 billion VELSD tokens in circulation. With a total supply of 2 billion VELSD tokens, this means that 80% of the total token supply is already in circulation. By destroying a portion of the circulating VELSD tokens through token burning, the total supply decreases. Consequently, the demand for VELSD tokens increases, thereby spiking its price.

The Four Options: Destroying VELSD Tokens

The token destruction proposal includes four options that VELSD token holders can vote for. Here are the options:
1. Destroying 500 million VELSD tokens
2. Destroying 300 million VELSD tokens
3. Destroying 200 million VELSD tokens
4. Not destroying any tokens
VELSD token holders can only vote once for one option. It’s important to analyze the consequences of each option to determine the best choice.

Option 1: Destroying 500 Million VELSD Tokens

If Option 1 wins with the majority of the vote, then 500 million VELSD tokens in circulation will be burned. This reduces the total supply of VELSD, thus increasing its demand and price. Consequently, the value of the remaining VELSD tokens increases, which benefits present VELSD token holders. However, it may be detrimental to future token holders, as there may not be enough VELSD tokens in circulation to accommodate future transactions.

Option 2: Destroying 300 Million VELSD Tokens

Option 2 is similar to Option 1, but with a lesser amount of token burn. Here, 300 million VELSD tokens in circulation will be burned. This still reduces the total supply of VELSD, but only to a lesser extent. The value of the remaining VELSD tokens still increases, benefitting present VELSD token holders. However, like Option 1, there may not be enough VELSD tokens in circulation to cater to future transactions.

Option 3: Destroying 200 Million VELSD Tokens

Option 3 includes burning 200 million VELSD tokens in circulation. This reduces the total supply of VELSD but to a much lesser extent than Options 1 and 2. While it still increases the value of the remaining VELSD tokens, it benefits both present and future token holders. However, it may not have a significant impact on the VELSD price due to the lesser amount of token burn.

Option 4: Not Destroying Any Tokens

Option 4 means that no VELSD tokens in circulation will be burned. This preserves the circulating supply of VELSD tokens, maintaining the current emission rates. While it benefits future token holders, it may not be beneficial to present token holders, as it may not spike the price of VELSD tokens.

The Power of VELSD Holders: Your Vote Counts

As a VELSD holder, your vote counts. Your preference will sway the vote for one option, and the winning option will determine the number of VELSD tokens to be burned. As a result, your vote can directly affect the value of your VELSD tokens.

Conclusion

The LSDx Finance community introduced a token destruction proposal to balance the interests of present and future VELSD token holders. VELSD holders have the power to decide the number of VELSD tokens to be burned through voting. The options include destroying 500 million VELSD tokens, destroying 300 million VELSD tokens, destroying 200 million VELSD tokens, and not destroying any tokens. Analyzing the consequences of each option will help determine which option is the best for present and future token holders.

FAQs

1. How will the LSDx token destruction proposal affect the value of VELSD tokens?
– By burning VELSD tokens, the total supply of VELSD tokens decreases, causing an increase in demand, and subsequently, an increase in price. Therefore, the value of VELSD tokens is likely to rise if the token burning proposal goes through.
2. How frequently can a VELSD holder vote for token destruction?
– A VELSD holder can only vote once for one option regarding token destruction.
3. How can I participate in the voting process for the LSDx token destruction proposal?
– VELSD holders can participate in the voting process by holding VELSD tokens on the LSDx Finance platform. The proposal will be open for voting at a specific time, and VELSD holders can then vote through the platform.