Summary

This proposal aims to enhance Lista DAO’s revenue redistribution mechanism by directing the 40% of LISTA tokens purchased through weekly revenue buybacks into a dedicated new contract address for permanent locking, replacing the latest proposal of using the veLISTA contract for this purpose.

By permanently removing these tokens from circulation, the proposal aims to create a deflationary effect that reduces the total supply of LISTA, enhances scarcity, and increases the long-term value of the token.

References

1. Current Revenue Redistribution Model in Voting: In the previous proposal which is currently up for vote, 40% of the revenue will be used to buy back LISTA, where it will be locked for 52 weeks perpetually through our auto-locking and auto-compounding features.

2. Proposed Change: Instead of locking LISTA into the veLISTA smart contract for 52 weeks perpetually through auto-lock and auto-compounding feature, LISTA will be locked in a new contract address (null address) where LISTA cannot be released into circulation.

Abstract

The proposed change introduces a deflationary strategy that complements Lista DAO’s tokenomics by permanently reducing the circulating supply of LISTA. This change builds on the prior redistribution plan, replacing perpetual locking with a new contract address that prevents LISTA from being released into circulation, achieving greater long-term price stability and value appreciation for LISTA holders. This proposal ensures the protocol continues to reward participants while enhancing the deflationary characteristics of LISTA, aligning with long-term ecosystem growth.

Motivation

1. Deflationary Pressure: LISTA tokens are permanently removed from circulation, reducing supply and providing veLISTA holders with more opportunities and rights over time.
2. Sustainability: This approach provides a sustainable method to increase the value of LISTA tokens without affecting the rewards distribution structure for veLISTA holders, since it no longer uses the veLISTA locking mechanism.

Specification

1. Locking LISTA permanently in a new contract address: The 40% of weekly revenue allocated towards the buying back of LISTA will be used to purchase LISTA from the market. Instead of locking the tokens in the veLISTA contract address, it will be permanently locked in a new contract address where it will never be released into circulation.
2. Continued Revenue Distribution: The remaining 60% of revenue will continue to be allocated as follows:

• Majority distributed to veLISTA holders.
• A small portion directed to operational expenses.

3. Implementation Timeline: The proposal will be implemented immediately upon approval of this proposal.

Benefits (Pros):

1. Deflationary Impact: Reducing the total circulating supply of LISTA enhances scarcity, benefiting holders with more opportunities and rights.
2. Consistency in Rewards: The proposal maintains the current rewards distribution structure, ensuring veLISTA holders continue to receive a significant share of revenue.

Voting Options

YES: Approve the use of a new contract address to permanently lock the 40% of LISTA purchased using protocol revenue. Maintain the existing 60% revenue allocation for veLISTA holders and operational expenses.

NO: Keep the current model where 40% of buy-back LISTA is perpetually locked into the veLISTA contract through our auto locking and auto-compounding features.