The Stargaze community has proposed a series of governance changes that would significantly cut emissions and lower the max supply of STARS tokens.
“It’s been incredible seeing the Stargaze community come together to revise tokenomics,” Stargaze creator Shane said in a Twitter comment about the new tokenomics plan.
Stargaze Tokenomics 2.0 is currently up on Commonwealth for discussion, and proposes to cut emissions by 60%. This would reduce the annual supply of STARS from 667 million to 267 million. The daily supply would drop from 1.8 million to 730,000.
Also proposed is to lower the max supply of STARS from 4 billion to 3 billion. This would be accomplished by burning 1 billion STARS tokens.
A third proposal would use funds from the community pool to supplement the emissions cut. The community pool currently receives 50% of daily emissions. Under the proposal, this would be reduced to 5%. The remaining 95% would be used to incentivize staking, NFT staking, and other activities.
The fourth proposal would change the FairBurn mechanism for NFT listing fees and Stargaze Name minting fees. Under the current mechanism, 50% of NFT listing fees are burned and 50% are redistributed to stakers. The proposal would change the NFT listing fee to be 100% burned. Stargaze Name mints are currently set up to be 33.3% burned, 33.3% sent to community pool, and 33.3% distributed to stakers. The proposal would change this to 50% burned and 50% going to stakers.
“Stargaze is the community contribution machine. I would expect nothing less,” Cosmos Content Creator Joe said about the proposed tokenomics changes. “Weeks of conversations lead to that. Thanks to @shan3v @SunnysideReaper and @WhiteMarlin4 for contributing to the proposed solution.”
“Feel like there’s so much more that contributed even. Plus all the input that led up to it too,” Twitter user Whitemarlin said. “Whole lot of people coming together to make improvements simply because they have skin in the game and/or because they care about Stargaze.”
The community is expected to vote on these proposals in the coming weeks. If they are approved, they could start to take effect as early as July.
The proposed changes are designed to address the high inflation of STARS tokens. Inflation is currently at 33%, which is considered unsustainable in the long term. The proposed changes would reduce inflation to 11% by July 2024 and 7% by July 2025.
The changes would also make STARS tokens more scarce, which could lead to an increase in price. The lower max supply would also make STARS tokens more valuable, as there would be less of them available.
The community is generally supportive of the proposed changes. They believe that the changes are necessary to improve the long-term health of the Stargaze ecosystem.
Another Twitter user, Jane Kwon, had this to say: “WOW I just dug through the updated @StargazeZone tokenomics. Fixes most of my complaints I’ve had (and been vocal about), excited for the future of $STARS NFA…”
