I am against burning any tokens for this project for the following reasons:
- It is short-sighted
- It will cause artificial, unsustainable price growth.
- It discourages other people from joining the project
- It moves the focus of the dev team from high priority to low priority work
It is short-sighted.
In the future, this project could execute multiple promotions using these tokens. If we burn them instead, we stop the project from executing any number of new and exciting ideas to either promote or bring new people into the project.
It will cause artificial, unsustainable price growth.
Outside of algorithmic stablecoins, the only real reason for burning tokens is to increase the price. This project has just started. It’s not a good look when the early investors of the project immediately vote themselves a raise instead of spending the time to add something that actually benefits the project as a whole. Also, a move like this this early in the life of the project may not even result in the price movement people would like to see. Without even a Convex Index token available on the market, there’s not much reason to invest in the project right now. We are all early to the party. If we reduce the number of tokens that are available, it may not even result in much price growth, because not many people are buying the token right now for any reason. The entire exercise of reducing the token amount may be wasted for that reason.
It discourages other people from joining the project.
As of right now, this is a good project, but the governance token price is low. When the Convex Index token is built and the team starts to promote the project, others will see the value in a good project with a great entry price. Those new investors will be encouraged to invest larger amounts of money into this DeFi project as opposed to others. If we burn tokens now, anyone who comes along afterwards will see us climbing the ladder to success while pulling up the ladder behind us. By not allowing as many tokens on the market, we are discouraging other people from seeing profits on their tokens the way we will. A move like this may hamstring early growth in the project.
It moves the focus of the dev team from high priority to low priority work.
Right now, the Convex Index token is the most important thing that the dev team can work on. But beyond that, they need to be free to make other index tokens with different risk levels, investigate other strategies for token diversification, and plan the future of the project. Instead, this proposal would take time away from all of those things to work on something that doesn’t flesh out the project. This, in my opinion, is not a good use of the time of the developers. Nobody will want to invest in a half-baked project. Working on this proposal will slow down the development of a fully featured product for the marketplace.
Instead of trying to force upward price movement for the token (that may not even happen), we need to trust in the development of a good project with strong fundamentals and sustainable growth. In the short term, we may not see the governance token price action we would like. But In the long run, a good project like this will outlast the other flash in the pan Ponzi DeFi schemes out there, and CortexDAO will win in the end.