LIP-21: $LIZ Token Supply Adjustment

Authors: pamprikrumplikas, wenn.eth, Animositas, Lu

Date Created: 21st May 2024

Recognition

Many community members weighed in on the importance of this change, including pamprikrumplikas, wenn.eth, Eliph, Nico, Rodio, Trenton, Lemz, Sagas, Banana of Mercy, and others.

Abstract

LIP-21 seeks to implement a strategic increase to the $LIZ token supply to address unit bias.

This change is designed to maximize holder and potential holder interest and leverage the psychology of pricing research to most effectively select the total $LIZ token quantity.

Main Changes

Token Supply Adjustment

Increase in Total Supply: To improve the token's psychological appeal, the total supply of $LIZ tokens will be increased by a factor of 10x or 100x. No dilutionary changes are included as part of this change. This adjustment will apply retroactively, meaning all pre-seed and seed participants, team members, or token rewards winners will receive 10x or 100x the number of $LIZ tokens originally purchased when exchanging pre-sale tokens, without altering the overall value they have received. This ensures a non-dilutive process.

Rationale

The proposed change is driven as an easy method to enhance the attractiveness of the $LIZ token within and beyond the Lizard Labs community.

By increasing the token supply, we leverage unit bias favorably to make $LIZ more appealing to new and smaller investors. Unit bias suggests that tokens with a lower unit cost are perceived as more accessible and attractive, (particularly to new and small-scale investors who might be intimidated by high per-unit prices), despite equivalent market cap implications. This perception can significantly influence investor behavior, making $LIZ more appealing at a psychological level by increasing the token quantity.

Implementation Timeline

Token Supply Adjustment: Before TGE. Minimal development costs are required. A 10:1 or 100:1 claim for cLIZ (reward placeholder tokens), vLIZ (pre-seed and seed tokens), and veLIZ (team placeholder token) would be implemented instead of a 1:1 exchange.

Conclusion

LIP-21 proposes a timely and strategic modification to the $LIZ supply pool. By adjusting the supply we aim to solidify the foundation of the Gaming Sub-DAO ecosystem and foster a more robust and engaged community.

Voting Options

A) No Change (100M $LIZ total supply) B) 10x (1B $LIZ total supply) C) 100x (10B $LIZ total supply)