RP-6(B): REZ Burn, HODL or Distribution Proposal

Execution of the 10% Supply Reduction Initiative

Reference

This proposal serves as the second part of the broader Buyback & Burn Program (RP-6). Following the successful passage and implementation of RP-6(A) authorizing the repurchase of up to 10% of the total REZ supply, this sub-proposal presents the next phase: determining how the repurchased tokens will be treated.

Unlike previous proposals, RP-6(B) will not follow a straightforward YAE / NAE voting structure. Instead, the community will have the opportunity to choose between two distinct execution paths, reflecting different long-term strategic outcomes for the protocol.

Summary

RP-6(B) proposes the formal execution of the REZ supply reduction process initiated under RP-6(A). The Renzo community will vote to determine how the repurchased REZ tokens should be allocated, from the following options:

• Option A: Burn 90% of the repurchased REZ tokens and distribute the remaining 10% to ezREZ stakers.

• Option B: Retain 90% of the repurchased REZ tokens in the Community Treasury for future strategic use, and distribute 10% to ezREZ stakers.

• Option C: Abstain from choosing between the above options.

This structure ensures that the community determines the balance between immediate deflationary impact (via burn) and strategic capital retention (via treasury management).

Motivation

The multi-option structure introduces greater community agency and flexibility, aligning with Renzo’s commitment to transparent and participatory governance. While RP-6(A) focused on the accumulation of repurchased tokens, RP-6(B) empowers the community to define their final purpose: either enhancing the token’s scarcity or preserving resources for future initiatives.

This approach responds directly to community feedback requesting a more nuanced governance decision rather than an all-or-nothing choice.

Implementation

If Option A passes:

• Burn Address: 90% of the repurchased REZ tokens will be sent to the burn address, permanently removing them from circulation: 0x000000000000000000000000000000000000dEaD

• The remaining 10% distributed to ezREZ stakers.

• Verification: Each burn transaction will be verifiable on-chain and reflected on the protocol’s public Dune Dashboard.

• Cadence: Burns will occur in tranches proportional to the cumulative buybacks conducted during the same period.

If Option B passes:

• The 90% allocation will be transferred to the Renzo Community Treasury, or held in a dedicated multisig for future governance-approved use cases (e.g., liquidity initiatives, incentive programs, or strategic partnerships).

• The remaining 10% will be distributed to ezREZ stakers, following the same schedule as the buyback program.

Timeline

The burn execution period will mirror the RP-6(A) buyback program, lasting up to 6 months from initiation, or until the 10% REZ supply cap is reached - whichever occurs first.

In effect, every tranche of REZ repurchased under RP-6(A) will be processed according to the outcome of this proposal - burned or retained as the buybacks take place.

Oversight and Reporting

• Public Tracking: The Renzo Dune Dashboard will display cumulative REZ repurchased, burned, or held in treasury, alongside the percentage completion of the 10% target.

• Auditable Updates: Monthly summaries will be shared on the Governance Forum for full transparency and historical recordkeeping.

Voting Options

• Option A. 90% Burn, distribute remaining 10% to ezREZ stakers

• Option B. 90% held in Community Treasury, distribute 10% to ezREZ stakers

• Option C. Abstain