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The Lisk community will soon have to decide whether to burn 100 million LSK tokens as the first major vote for a newly formed decentralized organization.
Starting September 27, the Lisk community will have seven days to vote on whether to burn 100 million LSK tokens, representing 25% of the total LSK supply, or allocate these tokens for community incentives until 2033.
In a press release shared with crypto.news, the Lisk team said this will be the “first major vote” for the newly formed Lisk DAO, which recently migrated to optimism A superchain to reduce access to network products across the Ethereum ecosystem.
If the community votes to burn the tokens, LSK’s total supply will drop to 300 million tokens from the current 400 million mark. Conversely, if the community chooses to allocate tokens, they will be awarded to the Lisk DAO Fund from 2027 to 2033 to enable the community to “drive initiatives, support growth campaigns, and fund innovative projects over the next decade,” according to a press release.
Dominik Schwenter, chief project officer at LISC, confirmed that the OnChain Foundation (formerly the LISC Foundation) would not participate in the vote “to ensure a fair, community-focused decision-making process.”
Lisk launched in 2016, and first revealed its migration plans in late 2023. The team said at the time in Blog post That the decision was driven by the need to “modernize” the Lisk ecosystem and make the network, which was initially designed as a Layer 1 chain, more “cost-effective for users and developers.”
