Exchange Ranking
Top Exchanges
24h Volume Ranking
Popularity Ranking
Exchange BTC Balance
Proof of Reserves
Decentralized Exchanges
Funding Rate
Funding Heatmap
Liquidation Data
Max Pain
Long/Short Ratio
Whale L/S Ratio
Binance/Okex/Huobi L/S
Bitfinex Margin L/S
ETF Tracker
Solana ETF
XRP ETF
Hong Kong ETF
Bitcoin Treasuries
Crypto Reversal
Ethereum Reserves
HyperLiquid Wallet Analysis
Hyperliquid Whale Watch
Large Transactions
On-chain Movement
Bitcoin ROI
Stablecoin Market Cap
Options Analysis
News
Articles
Economic Calendar
Features
Wallet
Contract Calculator
Security
Collections
Watchlist
Following
LSK Lisk proposes to end the DAO and destroy 100 million LSK tokens
The Lisk team announced a governance proposal to stop DAO operations and destroy 100 million LSK tokens. If the proposal is passed, the total supply of LSK will be reduced from 400 million to 300 million, marking a significant reduction in the number of tokens in circulation.
Proposal Details
The proposal targets the 100 million LSK tokens originally planned to be allocated to the DAO treasury between 2027 and 2033. These tokens will be destroyed and permanently withdrawn from circulation. In addition, approximately 47 million LSK tokens currently held in the DAO treasury or have been allocated to 2026 will be transferred to Lisk Ltd., the company behind the project. The proposal also includes closing governance forums and lifting penalties for early release of pledges. However, users still have to wait three days to withdraw their pledged tokens.
Background and Context
This proposal was made after Lisk previously announced that it would close the Lisk chain on October 31. The move marks a shift in its strategic focus away from its own blockchain network, which has struggled to maintain momentum on the highly competitive Layer-1 track. By destroying large supplies, Lisk aims to increase token scarcity and potentially stabilize their value, although the market response remains unclear.
Impact on LSK holders
For current LSK holders, the proposal brings both opportunities and risks. If demand remains stable, reduced supply may push prices higher. However, the transfer of 47 million LSKs to Lisk Ltd. raised questions about how the company will use the funds in the future and its commitment to the ecosystem. Although there will still be a three-day wait, removing the penalty for early release of pledges provides greater flexibility to users who may want to exit positions before the chain closes.
Community response and next steps
The Lisk community has begun discussing the proposal, and some members have expressed support for destroying the token as a reward for long-term holders. Others were cautious, pointing out that Lisk Ltd. needed to be transparent about its plans to transfer tokens. A governance vote is expected to take place in the next few weeks, and the results will determine the future direction of the LSK token economy model.
Conclusion
Lisk's proposal to end the DAO and destroy 100 million LSK tokens is a bold move that could reshape the token economy. As the project transforms from its own chain, this decision is likely to have a lasting impact on LSK's value and community trust. As the vote approaches, both holders and observers will be watching closely.
FAQs
Question: If the proposal is passed, what will the 100 million LSK tokens be handled?
Answer: The 100 million LSK tokens originally planned to be allocated to the DAO treasury between 2027 and 2033 will be destroyed, reducing the total supply from 400 million to 300 million.
Question: Will there be any changes to the pledge rules?
Answer: Yes, the proposal includes lifting the penalty for early release of pledge, but users still have to wait three days to withdraw their tokens.
Question: Why did Lisk close its chain?
Answer: Lisk has previously announced that it will close the Lisk chain on October 31, as part of its strategic shift away from its own blockchain network. The governance proposal is a follow-up to this decision and aims to restructure the token supply and governance structure.
