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.