Proposal to Reallocate a Portion of Burn Funds to the RainyDay Fund

Background

According to ExtraFi Tokenomics V2 and subsequent improvement proposals, we conduct $EXTRA burns every 4 epochs to reduce token supply and support the protocol's sustainability. To better manage risk, we propose reallocating 25% of the current burn amount to the existing RainyDay Fund.

The RainyDay Fund has accumulated ~$1 million and successfully mitigated bad debt during two past risk events, protecting both lenders and the protocol from losses.

Rationale

Reallocating part of the burn funds to the RainyDay Fund will enhance the protocol's ability to manage unexpected risks. This adjustment aims to improve risk resilience while maintaining regular token burns to support tokenomics stability.

Proposed Solution

We propose allocating 25% of the current burn amount to the RainyDay Fund moving forward.

Voting Options

• For: Approve the proposal to allocate 25% of the burn amount to the RainyDay Fund.
• Against: Reject the proposal and maintain the current burn structure without additional allocation to the RainyDay Fund.

For detailed data on buyback and burn amounts in each epoch, please refer to our community #epoch channel. https://discord.com/channels/1009330898967212063/1154034472048668772