SIP-006: Proposed STFX Token Burn

The STFX-ETH pool is slated to be reduced by 25% across the Ethereum Mainnet and Arbitrum chains, following the unanimous approval of SIP-005. Governance must now ratify a decision as to how these tokens will be repurposed, following their removal from the pool.

SIP-006 will outline an immediate strategy for the STFX tokens, while a future SIP will deliver a proposal for repurposing the ETH liquidity. The two are being conducted as independent governance proposals, given that the repurposing of ETH liquidity will likely be more contentious, and require significantly more time and iteration to reach a solution.

For STFX tokens, there are two relevant options:

1. Burn the STFX
2. Deliver it back to the community treasury

There have been very few community-related token initiatives to date, and the commencement of liquidity programs has yet to ensue, so both the DAO Treasury and Community Incentives pool are massively capitalized with $STFX. Redirecting to either pile seems to add little value, whereas burning would contribute toward deflationary momentum. Therefore, we propose burning the $STFX tokens removed from the liquidity pool.