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LVL Weekly Burn
This LVL Burn mechanism was implemented in LIP-022: Regulating LVL Balance after the DAO voted in favor. This mechanism regulates the DAO’s LVL balance.
Given that the DAO accrues trading fees on a continuous basis, there will be a weekly 1:1 burning of LVL tokens from the treasury reserve for every 1$ of trading fees it accumulates.
We believe that reducing terminal supply of LVL at the same rate that the platform is growing is a great way to simultaneously enhance the value of the protocol as well as reward its community of early adopters committed to the long term success of the protocol.
Last modified 5d ago