Fixed Cap, Dynamic Supply

I’m doing my 1st proposal in the daodao, please let me know if anything needs improvement.

I’ve tried to put this text directly in the proposal, but i got some error, probably on the size of the message. Thus would link voting to this post.

Overview

The proposal, developed with Regen Foundation and BlockScience, suggests transitioning $REGEN tokenomics to a Fixed Cap + Dynamic Supply model. This combines the clarity and scarcity narrative of a capped supply (like Bitcoin) with adaptive mint/burn mechanisms responsive to network activity, staking ratios, and ecological metrics (inspired by Ethereum’s EIP-1559 but with feedback loops for stability).

Key Motivations

• Narrative strength: “Carrying capacity” metaphor aligns with Regen’s regenerative mission.

• Economic adaptability: Controlled regrowth rate (r) and burn functions provide supply flexibility while preventing inflation.

• Ecological integration: Regrowth rates can respond to verified ecological data (e.g., CO₂ change).

• Investor clarity: Simple, credible story for tokenholders while retaining operational flexibility.

Proposed Next Steps (3-month initiative)

1. Finalize Model & Parameters – Calibrate regrowth rate, burn triggers, and ecological data feeds.

2. Simulation & Stress Testing – Model long-term supply behavior under varied network conditions.

3. Stakeholder Workshops – Engage validators, tokenholders, ecocredit actors for design feedback.

4. Governance Integration – Prepare proposals and code changes for Cosmos SDK modules.

5. Education & Comms – Publish explainer, infographics, validator guides.

Expected Outcomes

• Live simulation dashboard

• Community consensus on key parameters

• Governance proposal ready for Q4 2025

• Educational materials to support adoption

Supportive View

• Strong alignment with Regen’s ecological and economic goals.

• Offers both scarcity narrative and practical flexibility.

• Links token value more directly to ecological asset flows (sales, retirements, credit class creation).

• Tools to manage network funding needs while reinforcing ecological mission.

Critical View

• Model has merit, but timing is premature.

• Priority should be growing market volume, liquidity, and wider token distribution first.

• Inflation changes haven’t yet reached enough participants to matter.

• Without strong market demand and usage, a supply-cap narrative won’t drive value.

• Risk: distraction from urgent needs like liquidity incentives, user growth, and trading depth.

Call to Action for Signalling Vote

• Vote YES to initiate research, simulation, and design work toward implementing the model, or

• NO if you believe Regen should focus first on market traction before major tokenomic redesign.

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