Original Thread: Commonwealth
This post contains two proposals.
The first is a resubmission of Proposal 535’s parameters which were overwritten by the expedited proposal 539, the second implements a Burn address on Osmosis - something that doesn’t exist by default on Cosmos chains, and disposes of the extra epoch’s emissions through it.
Both target on-chain date of 30th June 2023.
This proposal performs the following parameter changes:
- Revert the Thirdening effect back to a third reduction
- Increase the Thirdening length to 2 years
This proposal aims to restore the maximum emissions of Osmosis to 1 billion by burning the excess OSMO generated during the delay to the Thirdening event on June 20, 2023.
This proposal designates the null address (osmo1qqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqmcn030) as the burn address for Osmosis. All supply queries will exclude this address to create an identical function of a traditional burn address on other systems.
The amount of excess OSMO generated is 547,945.205479 OSMO, and this proposal would directly send that amount to the null address from the community pool.
The Thirdening event took place on the epoch of the 21st of June, 2023, after the passing of Proposal 539.
This delayed implementation resulted in one additional epoch (20th June 2023/Epoch 732) of emissions at the previous rates.
As the time to perform the subsequent reduction event increments from the last change, the emissions of epoch 732 were completely surplus.
Therefore excess emissions were
200,000,000 / 365 = 547,945.205479
These emissions resulted in a new maximum supply of 1,000,547,945.205479 rather than the intended 1 billion.
Cosmos chains do not have a burn mechanism by default. Other chains, such as Ethereum, use the null address (0x0000000000000000000000000000000000000000) as a disposable address.
The equivalent on Osmosis is osmo1qqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqmcn030 which can be verified on the CLI by using the command
osmosisd debug addr 0000000000000000000000000000000000000000
To cause the null address to function as a burn address, it must be excluded from supply queries, after which it can be used to dispose of unwanted tokens.
While a private key theoretically exists for the null address, it is unknown, and this process is in use by several other chains for the same key.
Sourcing from Community Pool
While the excess OSMO was distributed between all parameter destinations, this proposal only uses the Community Pool as a source of the OSMO for disposal. This far simpler prevents any clawback mechanism from requiring a hard fork.
OSMO in the community pool is not circulating and only has actual value once it enters the circulating supply.
Rejection of Proposal
Rejection of this proposal would signal that the new maximum supply is 1,000,547,945.205479 or that the rectification method is unsuitable.
The implementation of this proposal will require the following steps:
Execution of Burn Transaction
This proposal transfers 547,945.205479 OSMO from the community pool to the null address (osmo1qqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqmcn030).
All supply queries will be adjusted to ignore any tokens held in the null address during a future software upgrade.
Restoring the maximum emissions of Osmosis to 1 billion by burning the excess OSMO generated during the Thirdening delay demonstrates the Osmosis community’s commitment to maintaining the protocol’s integrity. By implementing the proposed burn and designating the null address as the burn address, Osmosis ensures accurate supply figures and establishes a mechanism for future burns if necessary. This proposal aligns with Osmosis’s long-term sustainability and growth as a leading decentralized exchange platform.