Transition advertising fees from treasury revenue to token burns

Current situation

Advertisers could previously send Donuts to the Donut DAO treasury for banner ads, pinned comments, or pinned posts.

A dynamic pricing formula (ETIP-107) determined rates based on subreddit traffic and DONUT price.

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Problem

Reddit admins officially banned mods from receiving payment from third parties for mod actions, including ads.

This means DONUT can no longer be sent to the treasury for advertising purposes on r/EthTrader.

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Solution

Allow advertisers to buy and burn Donuts instead of sending them to the treasury.

We would continue to use the same dynamic advertising fee formula, but the Donuts would now be sent to the Arbitrum burn address (0x000...dead).

In case you want to understand how the formula works, please check ETIP - 107 on Snapshot. But here's a tldr of the formula:

AF = UMV / (1000 x MV) x M

• AF (advertising fee) - Charged daily
• UMV (unique monthly views) - Average over 30 days
• MV (market value) - Market value of DONUT in USD
• M (multiplier)

As for the multiplier (M), since we can no longer do pinned comments and banner rentals, then:

• x1 for the Daily pinned comment
• x2 for pinned posts / AMAs
• x3 for banner rental

Since only pinned posts / AMAs remain as allowed ad formats, the value of M would always be equal to 2.

The formula would be:

AF = UMV / (1000 x MV) x 2

Discounts from the original ETIP would still apply:

• 7-14 days: 10% discount
• 14+ days: 15% discount
• Repeated ads: 5% discount, and can stack with the discount for longer rentals.

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Advantages

• Keeps advertising alive on r/EthTrader.
• Aligns with Reddit's Moderator Code of Conduct.
• Increases DONUT deflation (more token burns).
• Preserves trust and transparency with the Reddit admins, our community, and advertisers.

Disadvantages

• No more treasury income from ads.
• Advertisers may not be interested in this new model, as the banner was the most sought after option.

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Conclusion

This ETIP protects r/EthTrader from Reddit admin action, helps maintain DONUT's biggest utility, and creates a new burning mechanism that helps the economy long term.