🗳️ On August 11, the Lista DAO community passed the proposal (LIP 021 - LISTA Deflationary Initiative) (55 votes, 99.91% in favor, 0.09% against) and successfully destroyed 200 million $LISTA on August 14 to complete the deflation.
Original link: https://snapshot.box/#/s:listavote.eth/proposal/0xdb92580e04ca8d688404a689a99579294715bd9ab858cc9b7ba637599720a6ff
The following are the details of the proposal:
Summary
This proposal aims to manage future token supply inflation, optimize the token economic structure, and strengthen the protocol's commitment to long-term value.
We propose to permanently destroy $LISTA 20% of the maximum supply (200 million LISTA), reducing the maximum supply from 1 billion to 800 million. At the same time, the originally fixed 40% permanently frozen allocation will be replaced with flexible allocation between veLISTA holders and DAO operational funds, while the remaining 60% revenue distribution will remain unchanged.
Reference Background
Current LISTA Repurchase and Revenue Distribution Mechanism:
According toLIP 016(Effective from January 24, 2025), 40% of weekly protocol income is used to repurchase LISTA and permanently freeze it. So far, this mechanism has repurchased4.36 million LISTAand sent to the official black hole address (https://bscscan.com/token/0xfceb31a79f71ac9cbdcf853519c1b12d379edc46?a=0x000000000000000000000000000000000000dead).Proposed Changes:
Rather than gradually destroying a small amount of LISTA each week, this proposal suggests making a more impactful strategic adjustment:One-time destruction of 200 million LISTA (20% of maximum supply)to immediately create a significant deflationary effect. At the same time, the fixed 40% revenue distribution model will be adjusted to a flexible model, allowing the DAO to dynamically allocate between veLISTA rewards and operational funds based on governance priorities and ecological needs.Overview
This proposal presents a stronger and more effective way to manage the supply of LISTA and enhance its value framework. Although the current repurchase mechanism gradually reduces circulation, its impact is still limited compared to the total of 1 billion.
Therefore, this proposal suggests taking more impactful measures:One-time destruction of 200 million LISTA (20% of maximum supply)to immediately create a significant deflationary effect and reinforce the protocol's commitment to long-term value.
Proactively managing token issuance helps reduce inflation risk, maintain reasonable valuation, and support long-term utility.After this destruction, the current fixed 40% revenue distribution (for permanent freezing) will be adjusted to flexible allocation, allowing the DAO to freely balance between veLISTA rewards and operational funds, while the remaining 60% revenue distribution remains unchanged.
Motivation
1. Proactively manage LISTA supply
One-time destruction of 200 million LISTA (20% of maximum supply) can significantly reduce the total amount of tokens, remove locked tokens beyond expected demand, actively control inflation risk, maintain reasonable valuation and support long-term token utility. This will make the supply more aligned with the protocol's growth and usage.
2. Enhance operational flexibility and support growth
The current 40% weekly repurchase allocation destroys only a small amount of LISTA each time, with limited impact. The deflationary effect of one-time destruction of 200 million LISTA is significantly stronger. Subsequently, this portion of funds can be flexibly used for collaboration, ecological incentives, and infrastructure development, while still rewarding veLISTA holders.
3. Strengthen commitment to long-term value
A large-scale 20% destruction, combined with a more flexible revenue distribution model, reflects the Lista DAO's commitment to a sustainable token economy and long-term ecological growth. This will enhance market confidence, improve competitiveness, and create a healthier development environment for LISTA and its holders.
Specific Plan
20% LISTA Destruction Details
Destruction Quantity: 200 million LISTA (20% of current maximum supply)
New Maximum Supply: 800 million LISTA
Execution Method: Send tokens to the black hole address to ensure their permanent removal from circulation.
Detailed Destruction Allocation Table
(Table 1: LISTA Destruction Details)Note: The destruction of 140 million LISTA from community allocation is an additional destruction on top of the 4.36 million LISTA previously repurchased from the market. The previously repurchased LISTA has been deposited into the black hole address and is not included in this destruction amount. Token Economy After Destruction (Tokenomics)
(Table 2: Token Economic Model After 20% Destruction)
Revenue Distribution Optimization
Adjustment Portion
The mechanism of using 40% of current weekly income for repurchasing and permanently freezing LISTA will be cancelled, replaced byflexible allocation between veLISTA rewards and DAO operational funds, to adapt to the changing ecology and growth needs.Unchanged Portion
The remaining 60% of revenue will continue to be distributed as follows:
Most allocated to veLISTA holders
A small portion for operational expenses
Implementation Timeline
Execution: Once the proposal is passed, the one-time destruction and revenue distribution update will be implemented immediately.
Disclosure: The updated token economy and revenue distribution will be published through official channels and submitted to CoinMarketCap and related CEXs to update token supply information.
Advantages (Pros)
20% Supply Reduction Effect:
One-time destruction of 200 million LISTA will immediately and permanently reduce the maximum supply, remove excess locked tokens, optimize the supply-demand balance, and maintain long-term valuation health.More Efficient Use of Revenue:
Transforming the originally fixed 40% repurchase fund into flexible allocation, allowing the DAO to use funds for more impactful directions (collaboration, marketing, incentives, infrastructure), while still rewarding veLISTA holders.Enhancing Market and Community Confidence:
Through the combination of 20% destruction and flexible allocation, the Lista DAO sends a clear signal to the market, demonstrating its commitment to a sustainable token economy and ecological growth, enhancing competitive position and strengthening holder trust.Voting Options
YES: Approve the destruction of 20% of the maximum supply of LISTA (200 million LISTA) and adjust the fixed 40% permanently frozen allocation to flexible allocation between veLISTA holder rewards and DAO operational funds.
NO: Maintain the current maximum supply of 1 billion LISTA and keep the existing revenue distribution model unchanged.
Next, let’s look forward to $LISTA accelerating and continuing to take off 🛫!
