PowerIndex is about to be launched, opening the door to marketing efforts which will bring new potential investors to inspect the PowerPool ecosystem and tokenomics. This is the time to consider reducing the current high ratio between the current market valuation (~12M$) to the diluted valuation (>200M$) by burning part of the community treasury tokens.
New crypto investors inspect a potential investment by inspecting the project fundamentals, team, community and tokenomics. The market to diluted valuation ratio is one of the tokenomics components. If that ratio is too high, it can prevent a potential investor to participate in the project due to the fear of being diluted too much when large amount of new tokens will be minted and dumped.
The community treasury tokens should provide the community incentives to reach different goals in order to grow the PowerPool ecosystem. However, since PowerPool is a new ecosystem and unknown to many crypto investors, the USD valuation of each CVP token has great effect of these incentives.
In case we burn some of the community treasury tokens we get lower market valuation to diluted valuation ratio which will be more attractive to new investors. They will more likely to buy, hodl CVP and participate in the PowerUniverse tools so that we maximize the USD valuation of each CVP token. In this situation we can achieve the same community goals with the treasury because each token is worth more USD.
In case we don’t burn any token, less investors will buy, hodl CVP and participate in the PowerUniverse tools so each token will be worth lower value in USD terms. We will need to hand over more tokens from the treasury to achieve the community goals, diluting the current CVP hodlers.
This proposal will determine whether the community support burning part of the community treasury tokens and what percentage of it should be burnt:
- Do not burn any of the community treasury tokens.
- Burn 25% of the community treasury tokens.
- Burn 50% of the community treasury tokens.
- Burn 75% of the community treasury tokens.
- Burn 90% of the community treasury tokens.