Overview
Currently, 30% of OLM tokens are allocated in a liquidity pool paired with ETH. While this setup has served OLM effectively in enabling token trading and fostering a strong market, the recent launch of the ORA token introduces an opportunity to further align OLM with its foundational vision.
OLM is the world’s first Initial Model Offering (IMO) powered by ORA, and transitioning the liquidity pool from ETH to ORA aligns the ecosystem, strengthens the OLM token itself, and enhances decentralization.
This proposal outlines the rationale and steps for replacing the OLM/ETH liquidity pool with an OLM/ORA pool, ensuring greater synergy between OLM and ORA while benefiting the community.
Rationale for Transition
The success of OLM is intrinsically tied to the ORA network. By pairing OLM with ORA instead of ETH, we strengthen the interdependence between both tokens and demonstrate our commitment to supporting the ORA ecosystem. This move reflects OLM’s alignment with its foundational vision as the world’s first Initial Model Offering (IMO) enabled by ORA.
With the recent Token Generation Event (TGE) of ORA, creating an OLM/ORA liquidity pool also supports the new token by driving its utility and adoption. This not only enhances OLM’s liquidity but also allows the community to engage more deeply with both tokens in the ecosystem.
Furthermore, transitioning to an OLM/ORA liquidity pool ensures greater decentralization. After resetting the pool, we plan to burn the LP tokens entirely, making the pool fully decentralized. Additionally, OLM tokens will be gradually burned over time, reducing the circulating supply and increasing their scarcity, which benefits the long-term holders.
The community stands to gain significant benefits from this transition. The new liquidity pool will enhance the utility of ORA by creating a direct trading pair with OLM, while also reinforcing the cohesion between the two tokens.
Next Steps (If Approved)
- Remove Liquidity from the Existing Pool:
- The current OLM/ETH liquidity pool will be dismantled, and the ETH will be retrieved.
- Acquire ORA with Retrieved ETH:
- The ETH from the existing pool will be utilized to purchase ORA tokens, ensuring the transition does not dilute the value of either token.
- Set Up a New OLM/ORA Liquidity Pool:
- The new liquidity pool will be established with the equivalent value of OLM and ORA tokens, replacing the previous OLM/ETH setup.
- Burn LP Control Tokens:
- To ensure the liquidity pool is entirely decentralized, LP control tokens will be burned permanently.
- Gradual OLM Burn:
- Burning OLM tokens will be implemented automatically with the burnt LP in each trade, reducing the circulating supply to enhance scarcity and value.
Benefits to the Community
- Stronger Ecosystem Synergy:
- This move aligns OLM with ORA, reinforcing the ecosystem's shared value and growth potential.
- Increased Utility:
- The transition incentivizes OLM token usage and strengthens its liquidity, offering new trading opportunities for holders.
- Decentralization and Scarcity:
- The burning of LP control tokens and gradual OLM burns ensure a decentralized and deflationary model, benefiting long-term token holders.
- Price Sustainability:
- Enhanced liquidity and auto burn mechanisms will support OLM’s price stability and growth.
Conclusion
The proposed transition is a strategic step to solidify OLM’s position within the ORA ecosystem. We urge the community to vote in favor of this proposal to drive mutual growth for OLM community and OLM token.
If passed, the team will proceed with the steps outlined, ensuring transparency and timely updates throughout the process. Let’s strengthen our ecosystem together.
Off-Chain Vote
For
23.39T OLM100%
Against
0 OLM0%
Abstain
0 OLM0%
Timeline
Dec 06, 2024Proposal created
Dec 06, 2024Proposal vote started
Dec 07, 2024Proposal vote ended
Dec 07, 2024Proposal updated