Community Proposal to Burn 5% of MNDE Supply Introduced via Futarchy

A new governance initiative from the Marinade community proposes burning 50 million MNDE tokens — representing 5% of the total supply — through the MetaDAO futarchy system. If approved, this would mark a significant reduction in MNDE’s total supply and further reinforce recent deflationary strategies adopted by the DAO.

While the proposal will be executed via the DAO-controlled treasury on Realms, it is being introduced and championed by a community member, not the core team.

What’s Being Proposed

The proposal, titled MIP.X: Burn 5% of MNDE Total Supply, would remove 50 million MNDE from the DAO treasury permanently, reducing the maximum supply from 1 billion to 950 million.

• The DAO currently holds ~643 million MNDE (64% of total supply)
• Circulating supply is approximately 430 million MNDE
• This burn would reduce the DAO’s treasury balance to ~593 million MNDE

This would be a one-time action, executed via Realms governance if the outcome of the futarchy market supports it.

How the Decision Will Be Made

The burn proposal will be evaluated through a MetaDAO futarchy market, following the same structure as previous community-driven decisions.

Two conditional markets will be created:

• Approve burn
• Reject burn

The outcome will be based on the relative performance of these two markets over a fixed time period. If the "approve" market performs above the rejection threshold, the DAO will execute the burn through its Realms-controlled treasury.

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Why This Proposal Matters

If approved, burning 5% of the MNDE supply would permanently reduce the total supply from 1 billion to 950 million. This one-time action would complement Marinade’s existing long-term token stewardship strategy — including the recently approved buyback program.

Buybacks and burns serve different purposes:

• Buybacks create recurring demand from protocol revenue, with tokens retained in the treasury for future DAO use
• Burns permanently remove supply, reinforcing scarcity and signaling long-term alignment

This proposal does not replace or diminish the buyback strategy. Instead, it adds another tool to the DAO’s evolving tokenomics framework — one focused on long-term clarity and community-driven deflation.

With over 640 million MNDE held in the treasury, the DAO is positioned to absorb this 50 million token burn without impacting incentive programs, contributor rewards, or governance participation. If executed, the burn would leave ~590 million MNDE in the treasury — still a strong position for the DAO going forward.

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Risks and Considerations

As with any irreversible action, the proposal encourages the community to weigh potential downsides:

• Reducing total supply also permanently limits future flexibility
• Unlike buybacks, a burn cannot respond dynamically to market conditions
• Removing tokens from the treasury could reduce optionality for grants or incentives in the future

However, the treasury would still retain a significant MNDE reserve post-burn, and the move may strengthen long-term confidence in tokenomics discipline.

What’s Next

• The futarchy market will be launched on MetaDAO using standard parameters
• If passed, the burn will be executed by the DAO via Realms
• The burn will be fully verifiable onchain and announced publicly

This proposal adds a new layer to the DAO’s evolving approach to MNDE stewardship — balancing buybacks, rewards, and now a direct burn, all governed by the community.

Stay Updated

The MIP.X burn proposal is expected to enter the futarchy process soon.

Follow @MarinadeFinance to stay informed about the proposal timeline, futarchy launch, and voting windows.

You can also join the discussion in the Marinade Forum and help evaluate the pros and cons before markets go live.

DAO governance is open to all MNDE holders — and community proposals like this one are a powerful reminder of what collective ownership can achieve.