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Burn or invest: Lisk announces date for community vote on 25% of the token supply

Zug, June 26th, 2024Lisk announces the date of a significant community vote for whether to keep or burn 100 million LSK tokens, representing 25% of the total capped supply of 400m. This community vote will offer the Lisk community a major opportunity to influence the strategic direction of the Lisk project through the newly launched Lisk DAO.

The vote comes at a pivotal moment, following Lisk’s migration from a L1 to a L2 as a member of the Optimism Superchain.

Vote Details:

Following Lisk’s decision to allow the community to determine the future of 100 million LSK tokens, which was announced on April 4, 2024 in the blog post “LSK 2.0: Migration to an ERC-20 Token,” the vote is scheduled to take place on September 24 and run for a period of 7 days until October 1st on the new Lisk DAO, using Tally for the voting process. 

Voting Options:

Community members will have two options to consider:

  1. Allocate to DAO Fund
    Selecting this option will allocate the 100 million LSK tokens to the Lisk DAO Fund, to be vested into the fund from 2027 – 2033 for the community to allocate to various programs and opportunities (15 million LSK tokens annually for six years, followed by 10 million in the seventh year). This funding will enable the community to drive initiatives, support growth campaigns, and finance innovative projects over the next decade.

  2. Burn from Supply
    Choosing this option would result in the permanent removal of the 100 million LSK tokens from the total supply. This action will reduce the total LSK token supply by 25%, to a total of 300 million tokens.

Context and Background:

Last week, Lisk announced the launch of its DAO in line with their schedule. The company, which has refocused on real-world assets (RWA) in emerging markets, has gained tremendous visibility in the past few months.

To ensure a fair and community-focused decision-making process, the Onchain Foundation will not participate in the vote. This empowers the community members to have the final say in how these tokens are utilized.

About Lisk:

Lisk provides a cost-efficient fast and scalable L2 network that is secured by Ethereum. As a long-standing Web3 infrastructure project, Lisk has been democratizing blockchain accessibility for developers and end users globally since 2016. Its core focus is to solve local problems in Emerging Markets by providing solutions around real-world assets (RWA), off-chain assets (OCA), and DePIN on-chain. As a member of the Optimism Superchain is contributing to onboarding the next 1 billion people to Web3.

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