Summary:

After a community-initiated discussion that spanned many months to explore how token scarcity may improve the token's reputation (see Exploring the Role of Token Scarcity in Strengthening Ecosystem Value), we are pleased to say that the discussion resulted in community feedback and concerns being taken into consideration, leading to this vote being raised for Itheum ecosystem governance.

This proposal seeks community agreement on initiating a Phase 1 Token Burn Program to reduce the ITHEUM max supply by 15%, equating to 150,000,000 ITHEUM tokens, over a maximum of 90 days. Full details of this program are outlined in the official document: Phase 1 Token Burn Program.

Proposal Details:

The Phase 1 Token Burn Program aims to:

Reduce the ITHEUM max supply from 1 billion to 850 million tokens.
Execute the burn over a base period of 90 days, with a daily base burn rate of 0.16% (1,666,667 tokens).
Enable a dynamic "boosted burn" rate up to 0.33% (3,333,333 tokens) if public usage of the Itheum protocol meets specific metrics, allowing the burn to conclude in as little as 45 days.

Token Source Breakdown:

Treasury: 7.00% (70,000,000 tokens)
Team/Advisory: 3.00% (30,000,000 tokens)
Ecosystem: 2.75% (27,500,000 tokens)
Community: 2.25% (22,500,000 tokens)

Once the 150,000,000 ITHEUM tokens are burned, the program will end, regardless of whether the maximum duration is reached.

Implementation:

Specific implementation details, including the mechanics of the dynamic burn rate and metrics for boosted burning, will be refined with the Itheum community through discussions on Discord, Telegram, and X. This proposal primarily seeks agreement on initiating the burn event.

Rationale:

This token burn aligns with the broader Itheum ecosystem strategy by:

Enhancing token scarcity and perceived value.
Empowering the community to influence the burn duration through protocol usage.
Strengthening long-term ecosystem sustainability.

Conclusion:

We propose initiating the Phase 1 Token Burn Program to reduce the ITHEUM max supply. The community’s approval is crucial to proceed with this plan. For detailed insights and program specifics, please refer to the full documentation here: Phase 1 Token Burn Program.

Disclaimer: This document is a brief summary. The full details, including potential refinements, are in the linked documentation.