Token Migration Proposal
Hello Siren community! Since the DAO voted in favor of migrating to a new token in March, Siren contributors have been hard at work crafting a plan for the economic design of the new SIREN token, including emission rates, point- and token-based incentive plans designed to align token holders and protocol users, and a plan for the SI to SIREN Migration.
We are seeking proof of alignment with the Siren community in order to ensure that we have reached consensus in a transparent manner on the path that the development of Siren, and its token, should take. This post provides an overview and central location for sharing all public-facing documents that have just been published. We are happy to answer any and all questions here, as well as actively participate in community Q&A in the Siren Discord Channel.
We sincerely look forward to questions, comments, and discussion on the proposed design. This design gives significant power and control to SIREN token holders and protocol participants. The more the community understands the model, the more power we collectively have to use these new tools to build sustainable growth.
Migration and Distribution blog
Token Economics Paper
Overview:
The migration from SI to SIREN will come with 30% dilution, which will be used primarily to fund token allocations to protocol users and to foster a healthy liquid market for the SIREN token. The newly-minted (non-migrated) tokens will be used for a community-directed pool, staking incentives, team retention and growth, liquidity, and airdrops for users. The SIREN token is designed to be counter-inflationary, with a low inflation rate countered with buybacks and burns from protocol revenue. The new token aims to cost-effectively promote growth with minimal enduring dilution. A particular focus in scaling is using incentives to approach consumer-specific pricing (CSP), valuing real users and participants rather than simply uninvolved token holders.
When the community has discussed the proposal, a vote will be submitted to the SIREN governance snapshot to approve / deny migrating from SI to SIREN in accordance with the design outlined in this Token Migration Post.
If approved, we aim to begin the migration early in Q4.