Premise: the $SHAKE token is much like "MILK2-GOLD" and acts as a deflationary force for the spaceswap.app project. Burning $MILK2 allows the creation of $SHAKE and is capped at 5000 supply. However there is no incentive to burn $MILK2 for SHAKE as the price of SHAKE is always out of line with the conversion rate. Two prior attempts to balance this have not been successful but the community has come up with a top-notch solution!
A.) Utilize a Price Oracle with the Shake Blender tool on spaceswap.app to determine the price of SHAKE minting dynamically based on the UNISWAP SHAKE-MILK2 Pool. Discount 5% (in the favor of SHAKE minter). This will ensure that minting is always affordable including gas fees and users will be incentivized to burn MILK2 tokens to generate SHAKE! Huge deflationary pressure will be created.
Example: currently it takes 7,757 MILK2 to mint a shake. Current value of MILK2 is $0.32 x 7,757 = $2,482 but the value of Shake is only at $1203 there is never an incentive to mint for the user.
B.) For SHAKE to actually be $MILK2 gold it must have a utility which gives it value. Therefore 1 Shake will hold a value of 10,000:1 as it did on the Launch of Spaceswap.app and anywhere you can use MILK2 in the Spaceswap.app DEFI products OTHER THAN interstellar farming (So for Spacelend, Spaceswap Starter, Booster, DAO voting etc) the token can be used as a 10,000:1 token alternative to $MILK2. This expanded utility will keep the price floor relatively pegged to the value of 10,000 MILK2 as it was meant to be.
C.) This proposal makes NO change in the amount of MILK2 or SHAKE token available or max supply