Summary

This proposal aims to manage future token supply inflation, optimize the tokenomics structure, and reinforce the protocol’s long-term value commitment.

We propose to permanently burn 20% of LISTA’s maximum supply (200M LISTA), reducing the max supply from 1B to 800M, and replacing the fixed 40% permanent LISTA freeze allocation with a flexible distribution between veLISTA holders and DAO operational funding, while keeping the remaining 60% revenue allocation unchanged.

Reference

The current LISTA buy back and revenue distribution mechanism:

Under LIP 016, effective from 2025-01-24, 40% of weekly protocol revenue has been allocated to buying back LISTA for permanent freezing. To date, this mechanism has bought back a total of 4.36 M LISTA, sent to the official Black Hole Address: BscScan link.

The proposed change:

Rather than gradually removing a small amount of LISTA each week, this proposal recommends a more impactful and strategic adjustment: executing a one-time burn of 200M LISTA (20% of the maximum supply) to deliver an immediate and substantial deflationary effect. In parallel, the fixed 40% weekly revenue allocation for permanent freezes would shift to a dynamic model, enabling flexible distribution between veLISTA rewards and DAO operational funding in line with evolving governance priorities and ecosystem needs.

Abstract

This proposal introduces a stronger, more impactful approach to managing LISTA’s token supply and enhancing its value framework. While the current buyback mechanism has steadily reduced circulating supply, the impact compared to 1 Billion Max circulation is still minor.

Instead of continuing this gradual process, this proposal recommends a more impactful adjustment: executing a one-time burn of 200M LISTA (20% of the maximum supply) to immediately deliver a substantial deflationary effect and reinforce the protocol’s long-term value commitment. Proactively managing token issuance helps reduce token inflation, maintain healthy valuation metrics, and support sustainable utility, making this burn an important step toward a healthier token economy.

Following this significant burn, the current fixed 40% allocation of weekly protocol revenue for permanent freezes will be replaced with a flexible model, allowing the DAO to dynamically balance veLISTA holder rewards and operational funding, while the 60% of revenue distribution remains the same.

Motivation

1. Proactive LISTA Supply Management:

Burning 200M LISTA (20% of max supply) delivers a substantial one-time supply cut, removing excess locked tokens and proactively curbing inflation risk. This helps mitigate inflationary pressure, preserve healthy valuation metrics, and support long-term token utility. This burn will remove a large portion of locked supply that exceeds projected operational needs, aligning the token supply more closely with actual protocol growth and usage.

2. Enhance Operational Flexibility for Growth

The current 40% weekly revenue allocation to buybacks removes only a small amount of LISTA over time, making its impact minimal compared to the proposed one-time burn of 200M LISTA. Once this significant deflationary effect is achieved, these funds can be redeployed through a flexible allocation model enabling the DAO to support partnerships, ecosystem incentives, and infrastructure, while still rewarding veLISTA holders.

3. Strengthen Confidence in the Protocol’s Long-Term Value Commitment

A significant 20% LISTA burn, paired with a more agile revenue allocation model, underscores Lista DAO’s commitment to sustainable tokenomics and long-term ecosystem growth. This decisive move signals market confidence, strengthens competitive positioning, and fosters a healthier growth environment for LISTA and its stakeholders.

Specification

20% LISTA Token Burn Details:

• Burn Amount: 200M LISTA (20% of current max supply)
• New Max Supply: 800M LISTA
• Execution Method: Tokens will be sent to the Black Hole Address, ensuring they are permanently removed from circulation.

Detailed Burn Allocation

The following table outlines the burn distribution across selected categories, showing the amount removed and the resulting allocation after the burn.

Table 1: LISTA Burn details

Note: The 140M LISTA burn from the Community allocation is in addition to the 4.36M LISTA previously bought back from the market. The earlier buyback remains in the Black Hole Address and is not included in this burn figure.

Tokenomics After the 20% LISTA Burn

The following table outlines the old and the new tokenomics of the protocol.

Table 2: Tokenomics After 20% LISTA Burn

Enhanced Revenue Distribution Details:

Change in Revenue Redistribution

The current mechanism of allocating 40% of weekly protocol revenue to buy back LISTA for permanent freezing will be removed. This portion will instead be distributed flexibly between veLISTA holder rewards and DAO operational funding, based on ongoing ecosystem and growth needs.

Unchanged Allocation

The remaining 60% of revenue will continue to be allocated as follows:

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

Implementation Timeline

• Execution: Upon approval, the one-time burn and revenue distribution update will be implemented immediately.
• Disclosure: Updated tokenomics and revenue distribution details will be published across official channels, and the supply changes will be submitted to CoinMarketCap and relevant CEXs for update.

Benefits (Pros)

• 20% Supply reduction Impact: The one-time burn of 200M LISTA will immediately and permanently lower the maximum supply, removing excess locked tokens that exceed projected needs. This improves the overall supply-demand balance and preserves healthy valuation metrics over the long term.
• More Effective Use of Revenue: Redirecting the current 40% weekly buyback allocation into a dynamic model allows Lista DAO to channel funds into areas that can deliver greater impact, such as partnerships, marketing, incentives, and infrastructure, while still maintaining rewards for veLISTA holders.
• Stronger Market and Community Confidence: By pairing the 20% LISTA brun with a more flexible revenue strategy, Lista DAO sends a clear signal of commitment to sustainable tokenomics and ecosystem growth. This balanced approach strengthens competitive positioning and reinforces stakeholder trust.

Voting Options

YES: Approve the permanent burn of 20% of LISTA’s max supply (200M LISTA) and replace the fixed 40% LISTA freeze allocation with a flexible distribution between veLISTA holder rewards and DAO operational funding.

NO: Maintain the current 1B LISTA max supply and keep the existing revenue distribution model unchanged.