MIP-12: Treasury token burn

PROPOSAL OUTLINE

The Mozaic DAO proposes a systematic reduction of its treasury holdings of $MOZ through a single token burn. This initiative will burn 140M $MOZ tokens, representing 14.37% of the total supply. This burn directly addresses community concerns about excess unallocated treasury tokens by permanently removing them from the supply.

SPECIFICATIONS

The Mozaic Treasury currently holds 452,251,797.51 $MOZ tokens, representing 46.4% of the total supply at the time of writing. The Mozaic DAO proposes to execute a single burn of 140M $MOZ tokens within seven days of the approval of this proposal. Upon completing the burn, the Treasury will retain 312.25M $MOZ tokens, representing 32.05% of the total supply. These remaining tokens will be allocated through future DAO proposals.

The DAO’s multi-sig wallets will authorise the burn transaction, ensuring transparent and verifiable execution.

JUSTIFICATION

The Mozaic DAO Treasury currently holds a significant portion of unallocated tokens that exceed its operational requirements. This surplus has raised legitimate concerns within the community about potential future dilution. The proposed burn provides a clear, verifiable mechanism to permanently remove these excess tokens from the supply while maintaining sufficient reserves for planned development initiatives.

OVERALL COST AND IMPACT

This proposal has no direct financial cost to the DAO as it burns only unallocated Treasury tokens. The burn represents a 14.37% decrease in total supply while maintaining sufficient tokens for development initiatives and strategic partnerships.

TIMEFRAME

• Discussion/Temperature check: 48 hours
• Snapshot voting: 72 hours
• Token burn execution: within 7 days of approval

STEPS TO IMPLEMENT

Upon approval of this proposal, the Core Contributors will:

1. Execute the 140M $MOZ burn within 7 days of approval
2. Provide proof of burn transactions by sending tokens to the 0x0000…dead address
3. Document and verify each burn by conducting the following: a. Transaction hash verification b. Treasury balance updates c. Community announcements d. Updates to CoinMarketCap and CoinGecko

CONSIDERATIONS

• Quorum threshold: 4,000,000 $xMOZ - maintained
• Snapshot voting requires at least 65% of the vote weighting for a proposal to be considered “APPROVED”
• The burn will be verifiable on chain.