Using Quasar Protocol Revenue to Buy Back and Burn $QSR Tokens

Authors: Quasar

Proposal Overview

This proposal advocates for the utilization of all tokens accrued by the Quasar Protocol through Protocol Revenue for the purpose of purchasing $QSR tokens on the open market and subsequently burning them. It further recommends the ongoing application of Protocol Revenue for the repurchase and destruction of tokens in the future.

Details

As of the drafting of this proposal, the Quasar DAO has amassed over $120,000 in protocol revenue, comprised of various tokens. This revenue accumulated from performance fees associated with the Concentrated Liquidity Vaults featured on the app.quasar.fi platform and additionally from POL market making services. The tokens designated for this burn are currently held in the Quasar Protocol’s protocol revenue wallets, specifically:

• osmo1m73h09tprkshlprx4y26uztcaf7396yzlg5fcj
• osmo1358e3m77wv32amkknxwlne0nu4kpl3g032a5xz

The proposed action is to convert these various tokens of the Quasar Protocol into $QSR tokens, which will then be forwarded to a smart contract specifically developed by Quasar Labs for the purpose of burning these tokens. This contract will act as the burn address. This process is expected to contribute to a visual reduction in the total circulating quantity of $QSR tokens, as recognized by indexers within the Cosmos ecosystem. Following the on-chain approval of this proposal, the token burn is planned to be executed within one week. This timeframe is deliberately extended to minimize speculation regarding the precise timing of the burn. Moving forward, it is proposed that the Quasar Protocol continues to allocate Protocol Revenue for the repurchase and burning of $QSR tokens on a systematic basis. The specific amounts designated for future buybacks and burns will be determined by governance decisions.

Rationale

As the Quasar Mainnet approaches its one-year anniversary, it becomes increasingly important to strengthen the connection between the Quasar application and the $QSR token. To date, the primary utility of the $QSR token has been to facilitate governance participation. This proposal introduces an additional layer of value by actively deploying protocol revenue to reduce the overall supply of $QSR tokens within the ecosystem permanently. The systematic enactment of this token burn strategy aims to enhance the scarcity of the $QSR token, thereby reinforcing the commitment of core community members and effectuating a permanent reduction in the total supply.

Voting-

• By voting YES, you agree to the changes above proposal suggests.
• By voting NO, you disagree to the changes above proposal suggests.
• By voting ABSTAIN, you express no opinion on the matter.
• A NoWithVeto vote indicates a proposal either (1) is deemed to be spam, i.e., irrelevant to Quasar, (2) disproportionately infringes on minority interests, or (3) violates or encourages violation of the rules of engagement as currently set out by Quasar governance.