Adopt a sublinear supply function?
Summary
Should ORE migrate to a deflationary emissions curve and reduce the supply cap to 5m tokens?
Overview
When ORE launched in April 2024, it was built with a linear emissions rate of 1 ORE/min and uncapped total supply. In response to overwhelming feedback from the community, we introduced an artificial supply cap of 21m tokens in the redesign of v2.
Over the last few months, the ORE community has continued to voice interest in accelerating ORE’s distribution. After considering a series of alternative models, we would like to propose the following changes be made:
- Reduce the supply cap from 21m to 5m tokens
- Reduce the emissions rate by 10% every 12 months
ORE's current limit of 21m tokens was originally chosen to mimic Bitcoin's famously popular total supply count. With a supply cap 4.2x lower, ORE's supply will be an order of magnitude more scarce than Bitcoin when fully-diluted.
Rather than infrequent "halvings" every 4 years, we believe ORE's mission would be better served by reducing emissions at a more gradual 10% per year. This would provide a faster, smoother, and scarcer distribution curve than Bitcoin. .ORE's supply schedule would roughly follow the timeline outlined in the table below and reach full dilution by approximately 2052.
| Year | Circulating | Dilution |
|---|---|---|
| ~5 | 2.5m | 50% |
| ~18 | 4.5m | 90% |
| ~28 | 5m | 100% |
We believe these changes strike an ideal balance between all the competing value sets in the ORE community:
- It reduces FDV to address sticker shock of buyers.
- It introduces a deflationary curve that decays faster than Bitcoin.
- It caps the supply an order of magnitude more scarce than Bitcoin.
- It provides ~30 years of mining runway for onboarding initiatives and liquidity incentives.
If passed, we will implement these changes and migrate the mainnet mining program. This would represent a major step forward in ORE's hardening process and bring us one step closer towards freezing the contract for good.
To discuss this proposal, join the Discord and let your voice be heard. https://discord.com/channels/1226038272673841236/1306330694917554257
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