The Lisk community is facing a crucial decision regarding the use of 25% of the total LSK token supply. Starting on September 27, community members will have the opportunity to vote on whether to burn 100 million LSK tokens or allocate them for community incentives until 2033.
This significant vote marks the first major decision to be made by the newly-formed decentralized autonomous organization, Lisk DAO. The organization recently migrated to the Optimism Superchain in order to enhance accessibility to the network’s products within the Ethereum ecosystem.
If the community chooses to burn the tokens, the total LSK token supply will be reduced from 400 million to 300 million. On the other hand, if the tokens are allocated for community incentives, they will be vested into the Lisk DAO Fund between 2027 and 2033. This will enable the community to spearhead initiatives, support growth campaigns, and finance innovative projects over the next decade.
Dominic Schwenter, Lisk’s chief project officer, has stressed that the Onchain Foundation, previously known as the Lisk Foundation, will not partake in the voting process to ensure fairness and a community-driven decision-making process.
Since its launch in 2016, Lisk has been working towards upgrading its ecosystem. The decision to migrate to the Optimism Superchain was announced in late 2023 with the goal of improving the cost-effectiveness for both users and developers. Originally designed as a layer-1 chain, Lisk aims to provide a more efficient platform for its community.
This vote presents a significant opportunity for the Lisk community to shape the future of the project and determine how a substantial portion of the token supply will be utilized. It highlights the commitment to decentralization and community involvement that lies at the core of Lisk’s philosophy. By actively participating in this decision-making process, community members can contribute to the growth and development of the Lisk ecosystem in a meaningful way.