[SQR-006]: Burn of 50,000,000 $SQR Tokens from Team & Advisory Pools

Introduction to Magic Square DAO

Magic Square is a comprehensive Web3 ecosystem that empowers projects and users to connect and thrive through its innovative Web3 App Store and Launchpad. The $SQR token powers the ecosystem, offering utilities for users and projects. With the DAO, the community can participate in shaping the future of the platform and the $SQR token. Voting power is determined by your staked and held $SQR, as outlined in the Magic Square DAO Documentation. Engage in discussions on this and other proposals in our Discord Community.

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Proposal Overview / TL;DR

This proposal seeks the DAO’s approval to burn 50,000,000 $SQR tokens from the Team and Advisory Pools.

Following the community-approved SQR-005, which delayed the distribution of tokens to the team and advisors, none of these tokens have been claimed to date.

The proposed burn aims to reduce token supply, combat downward price pressure, and enhance investor confidence in the $SQR token.

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Reasoning for the Proposal

• Unclaimed Tokens: As per SQR-005, team and advisor tokens remain unclaimed. This presents an opportunity to burn part of these allocations without disrupting ongoing operations.

• Token Value and Scarcity: Burning tokens reduces total supply, which can positively influence token value and signal strong confidence in the project’s long-term direction.

• Market Confidence: In a challenging market, this burn demonstrates a commitment to responsible token management and to the DAO community’s interests.

• Complementary Growth Initiatives: While burns help create scarcity, long-term value will also come from new product integrations. Magic Square is in the process of launching three new features:

  • Integration with a Yield Platform
  • Integration with a Prediction Market
  • Integration with a Perpetual Trading Platform

  Revenue from these new integrations will be used for future $SQR buybacks, adding consistent demand pressure alongside deflationary burns.

• Future Token Management: Additional burns may be proposed if and when needed, while maintaining a reasonable reserve of tokens for team and advisor incentives once market conditions improve — ensuring long-term commitment and motivation.

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Proposed Voting Options

1. For

   • Approve the burn of 50,000,000 $SQR tokens from the Team and Advisory Pools.
   • This will permanently remove these tokens from circulation to reduce supply and enhance $SQR’s long-term value proposition.

2. Against

   • Reject the proposal and keep the Team and Advisory Pools unchanged.

3. Abstain

   • No opinion on the proposal.

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Summary and Call to Action

This proposal aims to strengthen $SQR’s tokenomics by burning 50,000,000 tokens from unclaimed team and advisor allocations — reinforcing confidence, combating price pressure, and aligning incentives for sustainable ecosystem growth.

Review the proposal and cast your vote to help shape the future of Magic Square.

For further discussions, join our Discord Community.