Type:
Author(s): community members.

If passed, 90% of tokens remaining in the single-sided Meteora DAMM v2 pool will be withdrawn and burned. USDC withdrawn will remain in the project's treasury.

Motivation

As stated by the community members: The single-sided DAMM pool does not provide price support and creates unnecessary selling pressure. Withdrawing and burning the tokens would reduce the circulating supply and result in a better price.

Withdrawing the full liquidity and closing the position would cause visibility issues with some apps and Dexscreener as they don’t index Futarchy AMM pool at the moment of writing. Therefore, we propose to withdraw 90% of the tokens in the pool.

Note from the MetaDAO team: If, at the time of execution, fewer than 809,995 LOYAL tokens are withdrawn from the Meteora pool, the SPL burn instruction will fail. To prevent that, 50% of the withdrawn tokens will be burned, and the remaining 50% will be held to be burned under a subsequent proposal.

Specification

• Pool address: BGg7WsK98rhqtTp2uSKMa2yETqgwShFAjyf1RmYqCF7n
• Total LOYAL amount: 809,995

Process

1. Withdraw 809,995 LOYAL tokens remaining in the single-sided Meteora DAMM v2 pool.
2. Execute SPL burn instruction.