Context

After significant deliberation both internally and with the community, the Dogechain team has composed a new governance proposal regarding a major change in $DC tokenomics.

This proposal has been created with extensive feedback from the community and aims to provide current and future token holders with the best possible token optics. At the same time, it remains in alignment with the long-term vision of the Dogechain project.

Governance Proposal 🗳️

As a first step (of many) towards healthier tokenomics, and after extensive talks with the community, $DC holders can vote for or against a tiered burn of the total supply of unreleased $DC tokens, across all wallet allocations detailed in this document.

The burn tiers will be correlated to the amount of $DC locked in the vote-escrow model (veDC) as follows:

• Tier 1–20% of $DC circulating supply locked — 10% burn
• Tier 2–30% of $DC circulating supply locked — 15% burn
• Tier 3–40% of $DC circulating supply locked — 20% burn
• Tier 4–50% of $DC circulating supply locked — 25% burn (max)

⚠️ With the condition that the average lockup period remains above 3 years.

If the average time drops under 3 years, the burn size will be reduced proportionally to the reduced average timelock.

For example:

• The community has reached Tier 2 — 15% burn and the average lockup time remains above 3 years. The team will burn 15% * 1 = 15%
• The community has reached Tier 2 — 15% burn but the average lockup time drops to 1.5 years (50% of 3 years). The team will burn 15% * 0.5 = 7.5%
• The community has reached the Tier 2 — 15% burn and the average lockup drops to 1 year (33% of 3 years). The team will burn 15% * 0.33 = 5%, etc.

The snapshot will be taken on June 30, 2023, and will lock in the tier of the burn. The burn of the tokens will be carried out imminently after the snapshot.

Proposal Goal 🎯

This proposal will aim to:

• Increase the amount of $DC staked in the veDC model and, in turn, constrict the circulating supply with provable on-chain lockup evidence.
• Reduce the total supply of the tokens, and in turn, increase the circulating supply percentage without injecting new tokens on the market.

The Dogechain team will follow this initial tokenomics improvement with various solutions such as:

Improving tokenomics optics by transparently Increasing circulating supply and locking tokens into veDC/smart contract lockers.

Increasing Dogechain userbase and $DC token holders through:

• On-chain airdrop tasks to bring more users to Dogechain and educate them about utility.
• Learn & Earn campaigns through various high-level crypto institutions.
• Airdrops to decentralized platforms that synergize with Dogechain’s ethos

Voting Rules 📜

Read these rules carefully to avoid any inconvenience during the vote. Note that some actions are decisive and cannot be undone until the voting window ends.

• Voting for or against the tiered burn will be done on the native governance platform dogegress.dog.
• Duration: May 18 2023 — May 25 2023.
• For the vote to be valid, a threshold of 5 billion veDC needs to be used for the vote.
• $DC token holders will be able to vote with veDC tokens, obtained by locking $DC in the veDC model. To learn how to do this, follow this guide.
• Only Dogechain mainnet $DC tokens are eligible to be locked in veDC. If your tokens reside on Ethereum and you wish to vote, you need to bridge them over on the Dogechain network.
• Users that have veDC delegated to validators will need to withdraw their tokens at the time of the vote, and stake your veDC in the vote. Once the vote ends, you can redelegate to the validator of their choice and resume receiving $DC rewards from the staking model.
• Please note that once you vote, you cannot unstake veDC from the vote until the vote ends.
• You can only vote once. You will not be able to add votes afterward, so make sure you make your vote count with the maximum veDC you plan to commit to either Yes or No.

Results ✅

If the vote for the tiered burn passes, users will have until June 30, 2023 to lock up their $DC in veDC to increase the circulating supply staking percentage.

The snapshot will be taken on June 30, 2023, and will lock in the tier of the burn. The burn of the tokens will be carried out imminently after the snapshot, following the tier that has been reached.

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