Prop 123: UMEE Burn Auction Module (Signaling Prop)

We propose the UX protocol take 2% of fees generated from liquidations and send the fees to a burn auction module (refer to Gravity Bridge’s Burn Auction Module/the Apollo Upgrade for an example of this being currently implemented in the Cosmos Ecosystem), where users are only allowed to bid on the assets using UMEE, with the winning bidder’s UMEE being subsequently burned and non-winners being sent back their UMEE.

The two primary benefits of the burn auction are: it will encourage more interaction with the UX platform (attracting new users) and this method of supply reduction exclusively targets circulating supply which will have the greatest impact on market supply/demand dynamics.

If this proposal passes, the development team should explore the best way in which to go about implementing such a mechanism so that UMEE can begin it's journey towards an Ultra-Sound and Deflationary Future.

Vote Yes if you support this idea. Vote No if you do not support this idea.

Link to CW discussion and poll: https://commonwealth.im/umee/discussion/14055-umee-burn-auction-module