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CarbonswapCarbonswapby0x26Daf0750B1AB7D1359412ed5656F4e9739D6c310x26Da…6c31

SUSU 0,05% buyback and burn (SIP-1559)

Voting ended over 4 years agoSucceeded

The current inflation because of the rewards program is about 105.962 SUSU/day and this is causing sell pressure on the SUSU token. And thus this proposal is to change the tokenomics to add a possibility of SUSU becoming deflationary if enough $ volume is being traded on Carbonswap (SUSU inprovement proposal (SIP-1559)).

Currently all trades on Carbonswap have a 0,30% swap fee that consists of 0,25% that is going to the liquidity providers and 0,05% that is going to the SUSU stakers (XSUSU holders)

This proposal is to still keep it at 0,30% total, but to change it to: 0,20% that is going to the liquidity providers and 0,05% that is going to the SUSU stakers (XSUSU holders) and the other 0,05% that would go to a buyback and burn of SUSU tokens.

(Disclaimer: these calculations are based on current SUSU, EWT and all other token prices which are subject to change in the future. oh and maybe my calculation are wrong, double-check it before voting.) SUSU price at time of writing $0,167.

Average volume/day in the last 16 weeks on Carbonswap is about $2.330.000/day, 0,05% of that already is about $1.165/day, so about 6.976 SUSU/day that would be bought back and burned daily. After 2 years the circulating supply of SUSU would have increased 5% less because of the buyback and burn. (103.848.000 instead of 109.010.000)

So as said before the daily increase is SUSU's supply is 6,5 SUSU/block so about 105.960/day. So the buyback and burn would have to be higher then this amount for SUSU to turn deflationary, this calculation below are to see at what volume amount SUSU would turn deflationary:

So lets assume Carbonswap getting $35.500.000/day, that is more then 15x the average volume in the last 16 weeks, and 1,7x the ath volume/day, but still pretty reasonable and possible to be reached in the future I would say. 0,05% of $35.500.000/day ,that would be $17.750 going to a buyback and burn per day, 106.287 SUSU/day getting bought and burned. After 2 years the circulating supply of SUSU would have increased 2,6x less because of the buyback and burn. (30.358.000 instead of 109.010.000)

Link to spreadsheet that you can download if you want to try different volume amounts yourself: https://docs.google.com/spreadsheets/d/1gSLtuR6lzAryS6mhR1zxofS69f_YxS5BltoUEld6UDw/edit?usp=sharing

TLDR: Change the current: 0,30% swap fee (0,25% LP token holders, 0,05% stakers) to: 0,30% swap fee (0,20% LP token holders, 0,05% stakers, 0,05% buyback and burn of SUSU tokens)

This would add small buy pressure every trade and SUSU would turn deflationary if Carbonswap would have $35.500.000> volume/day.

Off-Chain Vote

Yes
1.59M 99.8%
No
2.58K 0.2%
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Timeline

Aug 21, 2021Proposal created
Aug 21, 2021Proposal vote started
Aug 27, 2021Proposal vote ended
Oct 26, 2023Proposal updated