Coinburns - Are they good for the community?
I rather think not. Here's a quick scenario -
eosDAC Tokens: Majority-Owned by the EOS Community
In order to create an EOS block-producer that is owned by the EOS community itself, 75% of eosDAC tokens will be airdropped to the EOS token holders themselves. 20% of the tokens have been given to the Launch Team, Advisors and Wider Community Network. Without their free contribution of time, energy and financial resources eosDAC would not have come into existence. The remaining 5% of eosDAC tokens have been given to eosDAC Ltd, which intends to use these for capital reserve.
There were 1,200,000,000 tokens at launch and there are 660,755,177 EOSDAC in circulation.
Below is the reconciliation of the distribution of the 75% community airdrop.
Confirmation from the eosDAC telegram channel:
[In reply to Tech1]
The tokens that were burned were the unclaimed tokens out of the 75% that was allocated for the airdrop. https://t.me/eosdacio/34052
In my view there are several things that stick out:
The selected date for the snapshot - 15th April 2018 - 6 weeks before the end of the ICO - denying approx 90m EOS tokens from the airdrop.
The expectation of support from the main exchanges by the launch team - Some mainstream coins like Electroneum have not made it to Binance and Bitfinex yet they are already in circulation. It was extremely ambitious of the team to expect support at the material point in the lifecycle of their project.
The rushed coin burn - Before main net launch, leading to a restriction on availability of the token.
According to the steem intro post, the eosDAC launch team had allocated themselves 20% of the coin distribution (240,000,000 tokens). Following the coinburn, their percentage ownership is now 24.9%. Is it any wonder they are not entertaining any suggestion of utilising the EOS genesis snapshot like the majority of dApps?
It is very difficult to see this as anything but a well designed and choreographed equity grab by the decision makers at eosDAC. They currently own 36.3% of the circulating volume valued at $34.9m of total market cap. That is 34 million reasons to harden their position on this.