Proposal for Ending Lisk DAO and Burning 100 Million LSK

The Lisk (LSK) team has submitted a governance proposal that includes the termination of the Lisk DAO and the burning of 100 million LSK. If the proposal passes, the total supply of LSK will decrease from 400 million to 300 million. The tokens to be burned are the 100 million LSK that were to be allocated to the DAO treasury from 2027 to 2033, and it also includes a plan to transfer approximately 47 million LSK, which will already be allocated or usable by 2026, to Lisk Ltd. This proposal addresses both the token supply structure and the operational framework, eliminating 100 million from the total supply of 400 million, resulting in a nominal supply reduction of 25% if passed. The DAO is an organization where token holders or delegated participants vote to decide on fund execution and operational changes, with the treasury functioning as a communal fund pool. The termination of the DAO can be interpreted as a restructuring of the decision-making framework, while the burning of tokens serves to eliminate the quantity that will enter the treasury in the future. The proposal also includes provisions for stakers to exit without penalty after a three-day waiting period through an emergency unlock. The Lisk chain is scheduled to terminate on October 31. The termination of the DAO, the burning of 100 million LSK, and the transfer of remaining tokens will be executed after the governance proposal is passed.

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