Lagrange DAO Voting Approaches: How Will the Proposal Affect the Price of $LA ? #Lagrange

Lagrange DAO is about to vote on a key governance proposal, the outcome of which could significantly affect the market performance of the $LA token. This proposal involves adjustments to the token economic model and the allocation of ecological funds. Below is a potential impact analysis:

1. Token Burn and Deflationary Mechanism

If the proposal passes to use part of the ecological income for LA burn (such as 20% of the on-chain proof service fees), it may directly reduce circulation and enhance token scarcity. The current circulation of LA is only 19.3%, and the deflationary design may drive short-term price increases.

2. Progress in EigenLayer AVS Integration

The proposal plans to expand cooperation with EigenLayer, incorporating LA staking into its Active Verification Service (AVS). Successful integration could attract more re-staking funds, increasing the demand for LA staking and its on-chain utility.

3. Controversy Over Ecological Fund Allocation

Some community members oppose using 30% of the ecological fund for ZKML (Zero-Knowledge Machine Learning) development, believing that priority should be given to cross-chain infrastructure support. If the voting results lean towards conservatism, it may suppress market expectations for $LA's technological breakthroughs.

Conclusion: Short-term price fluctuations depend on the likelihood of the deflationary proposal passing, while long-term value relies on technological implementation and ecological synergy. Investors need to closely monitor the voting rate and institutional movements (such as changes in Coinbase holdings). @Lagrange Official