4/ A new discussion has been introduced on commonwealth.
The TLDR:
- OSMO acquired via the ProtoRev module will be burned. 🔥
- $ATOM and $USDC will be transferred to the Community Pool, and an equivalent value of $OSMO from the Community Pool will be burned.
5/ So why do this rather than just burning it all?
Non $OSMO tokens have the ability to earn additional yield for the Protocol without increasing inflationary pressure.
$ATOM and $USDC are assets which could generate even more revenue.
6/ Additionally, the @osmosiszone community pool is largely comprised of $OSMO tokens.
Adding $ATOM and $USDC would bode well for diversification.
While reducing the max supply of $OSMO by burning them.
7/ The second component introduces a burn of $OSMO collected by the ProtoRev Module.
- This removes $OSMO from circulation.
- Introduces deflationary pressure on @osmosiszone
8/ Compounding these changes with the Upcoming Thirdening and $OSMO 2.0 implementation could begin a flywheel effect.
Real yield 🔁 Deflation Pressure 🔁 value generation for $OSMO
Things are getting really interesting for @osmosiszone 🔥
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As EIP-4844 introduces Blob transactions, we will see a different fee markets, reducing inefficiencies for L2s