To provide context for the discussion, today there is a good chunk of allocation that is unused, can be redirected, or can be removed out of the circulation permanently.
@Alice was drafting a proposal about that, if she wants she can chime in, get some ideas the discussion here or share more context.
Hi! I just wanted to clarify that the max time-locked option is one year.
Neverland is at its core a lending protocol. The primary goal for DUST tokens is to incentivize lending and borrowing activity. This is what generates the revenue that then gets directed back to DUST holders. The one cannot be separates from the other, but first and foremost, the lending activity must be strong if veDUST is to also be strong.
We have definitely considered taking unused DUST from other allocations to redirect to lending and borrowing incentives after the initial two-year period comes to an end. To do this earlier though, would introduce unnecessary sell pressure on DUST at a time when the wider market is struggling to appreciate its value, even in spite of consistent 3-digit APRs in USDC since launch. I suspect this decision at that time would need to come from the DAO and not the team though, but I do want to emphasize that the lending activity behavior should not be ignored when considering incentives, as this is the heart of who we are, what we do, and where our revenue comes from. When this is strong, veDUST is strong. <3
In my opinion this will be benefitial if those locked dust’s usdc revenue will be distributed by a smart contract throught the current investors. In general this is complex problem to be solved. I think burn is better
Interesting concept, xloomusx, and it’s great to see the forum being used for raw brainstorming. Always tough to cope with dilemmas. However, instead of diverting burns, we should focus on directing real protocol revenue (fees) to long-term lockers so the dividend is paid in organic yield rather than just recirculating DUST.
I agree that the burning of tokens is not the best way (most especially a project that is just starting), a lot of projects and protocols have made burning major marketing plus processing feature - to no avail.