Abstract
This proposal recommends addressing the unclaimed airdrop tokens after three months by either burning them or retaining them in their current state. This approach aims to manage the supply of TINY tokens effectively, ensuring the value is maintained and demonstrating our commitment to the platform’s sustainability.
Objective
To decide on handling unclaimed airdrop tokens after 3 months by either burning them to reduce the circulating supply or retaining them in their current state.
Background
During the initial airdrop, a significant number of TINY tokens were allocated to loyal users. In total, 60 million TINY tokens were claimed by the community. However, some of these tokens may remain unclaimed after three months. To ensure these tokens contribute positively to the ecosystem, we propose two options: burn the unclaimed tokens to reduce the total supply or retain them in their current state.
Details: Handling Unclaimed Tokens
- Burning the Tokens:
- Any TINY tokens unclaimed after three months will be permanently removed from circulation.
- This action will decrease the overall supply of TINY tokens, which can enhance stability and create a more favorable environment for token holders.
- Retaining the Tokens:
- Unclaimed tokens will remain in their current state.
- This maintains the current token supply and distribution structure.
Community Benefits
- Burning Tokens:
- Reduces the total supply, potentially increasing scarcity and value.
- Sends a message of commitment to token value preservation.
- Retaining Tokens:
- Preserves the original token distribution plan.
- Maintains flexibility for future community decisions regarding these tokens.
Implementation Steps
- Smart Contract Update (if burning option is chosen):
- Modify and redeploy the smart contract to handle the burning of unclaimed tokens.
- Community Communication:
- Inform the community about the decision and its benefits.
Potential Challenges
- User Acceptance:
- Ensuring the community supports the decision, whether it’s burning or retaining.
- Market Reaction:
- Monitoring the market’s response to the chosen strategy.
Metrics for Success
- Token Price Stability:
- Track the stability and growth of the TINY token price post-implementation.
- Community Sentiment:
- Monitor feedback from the community through communication channels & metrics.
Budget and Funding
- No Additional Funding Required:
- The initiative utilizes existing unclaimed tokens, ensuring no extra burden on the treasury.
Conclusion
This proposal aims to effectively manage the unclaimed airdrop tokens by either burning them or retaining them in their current state. Both options have the potential to impact the Tinyman ecosystem, and the community’s decision will contribute to its long-term sustainability and growth.
4 Likes
There is literally NO correlation to blanket simple burning and price impact within this context, The only one’s wanting burning are MISINFORMED or actors wishing to see the community’s influence reduced.
By burning TINY tokens, the distribution ratio between the community, protocol, and investors skews further from the community’s favor. Given that the community only holds 35% of the tokens compared to the 34.35% held by the protocol and 30.65% by investors, burning tokens exacerbates this imbalance. Instead, adding tokens to the reward pool ensures equitable distribution based on commitment, allowing community members to earn more allocation. This approach fosters active participation and doesn’t disrupt the balance as severely as burning would, especially since the potential burn amount is relatively small and EXTREMELY UNLIKELY TO IMPACT TOKEN PRICE.
13 Likes
What amount was unclaimed?
4 Likes
The last I checked only 35% was claimed.
4 Likes
Or, put the unclaimed airdrop in the locked tiny gov rewards pool after some months.
That way it will still flow to the community, but to the actual active one.
9 Likes
I’d be in favor of retaining the tokens, locking them for 4 years, and doling out the staking rewards evenly to active Tinyman community members - via smart contracts tied to an arc-19 token/nft earned according to level of activity within the Tinyman governance forums. Criteria to receive the nft (and staking rewards) could be determined via community vote, skewing on the side of simple participation. Even better would be requiring proof of individual identity to receive the nft, ensuring one per user and preventing bot farming.
6 Likes
#1
How does burning these tokens benefit the community? - if anything, it benefits the investors and Tinyman team - as their share and voice automatically gets disproportionally higher compared to the communities voice - this is UNFAIR in my eyes.
@Vidhyanand - If you want to burn X% of the communities share of tokens - then please also burn X% share of the investors amount along with X% of the protocols teams amount. This is fair and will bring even more confidence to the protocol and show that the Tinyman Team has integrity.
The above is why I think burning them is the wrong move.
#2
The unclaimed tokens in actual fact belongs to the community right? So by all means, the ACTIVE community should still end up benefiting from these unclaimed tokens as it has been set aside FOR THE COMMUNITY IN THE FIRST PLACE.
It doesn’t matter which method you use to make these unclaimed beneficial to the community but these tokens should somehow end up in the active communities wallets, one way or another.
- Redistributing them to users who claimed them in the first place is an option.
- Locking them up in the governance rewards pool is an option.
- Allocating this amount in air drop phase 2 is another option.
- Plenty of other viable options where the community benefits…
Just don’t burn them.
Regarding your bot farming argument @simonb.algo - we have to accept that if we want decentralization, bots will exist and always exist… decentralized means fair game for all. One can pay a coder to create a bot for them. Or if you know how to code, it’s your good luck then and you can create bots for yourself and benefit from them.
6 Likes
Every single tiny token I got from airdrops I have locked them up for 4 years plus.
I didn’t sell a single one.
Many on the same boat as me.
6 Likes
I agree with you.
The tokens should be redistributed to the community (meaning the users who already claimed their air drops)
5 Likes
IMO burning of unclaimed tokens make sense. Once done, the news will provide a positive outlook for the tiny tokens. This will attract more community members to the ecosystem which will have a positive impact on decentralization of governance process.
3 Likes
burn.
They were intended for the airdrop, repurposing them makes little sense, if you distribute them to people who “claimed” their rewards - then you are basically giving out double or more/wallet than what you intended and accounted for in the tokenomics (imagine the bot farm with 10k accounts getting x3 rewards instead - not good).
4 Likes
There is literally NO correlation to burning and price impact. The only one’s wanting burning are MISINFORMED or actors wishing to see the community’s influence reduced.
3 Likes
Burning of token induces confidence in community. i never stated that there will be a price impact.
2 Likes
The confidence in the community due to burning is subjective—but the actual numbers are not. What truly instills confidence is knowing the community maintains more equitable ratios, ensuring a voice in major decisions, rather than further concentrating more influence and power to the protocol and investors.
4 Likes
In that case the tokens that were meant for airdrop should never be redistributed. So burn them. Also decentralization is a long term process. Even bitcoin is going through one.
3 Likes
In that case, I’d argue to show even more confidence, might as well set apart 10% of the entire supply and burn it.
2 Likes
I agree to this. Makes very good sense.
Lock it up in the tinyman rewards pool - loyal users will get rewarded.
Or redistribute them to the loyal users who’ve claimed their airdrops.
Burning makes zero sense. The amount is too too less to have any price impact.
If you want to show the world that burning tokens is a sign of confidence, tinyman team can actually set a schedule and burn an X amount of tokens quarterly or yearly (ie binance bnb style) - this is true sign of confidence.
3 Likes
Absolutely 100%.
Burning makes zero sense.
4 Likes
Agree with your sentiments! Especially regarding redistributing to active community members. However, regarding bots, what would your thoughts be on using some form of identity verification (even via a third party, that Tinyman would be blinded to) to verify active individuals (and not bots or multiple accounts) receive airdrops/distributions for a next phase? This would require more logistics, but would in my mind increase fairness.
3 Likes