Hello IoTeX Team,
The burndrop mechanism is great for growing the devices. I keep looking at the numbers. It grows very well.
However, IOTX burning is kind of wasting. Ethereum is offering new ETH to be mined every year.
I suggest that instead of burning IOTX, burndrop should inject the “burnt” token to reward pool, which is reserved for future mining.
Keep up the great work!
This is perhaps a great point.
IOTX has a fixed supply, and its economic design looks like the Taxation Model - more on-chain transactions (which is analogous to the GDP of a country) occur, more gas fees get collected in the protocol treasure which is called rewarding pool (which is analogous to the taxes go to the government). The treasure will be used to fund future block rewards (which is analogous to tax is spent for the public good).
From this angle, burning IOTX to 0x00…00 creates contraction of the macro iotex economy, which is not ideal. Alternatively, burning IOTX into the treasury doesn’t change the incentive mechanism for builders/entrepreneurs/manufacturers to bring more devices (as well as their data and users) to iotex. As a positive side effect, it funds the treasure for the long term and supports the sustainable growth of iotex economy.
How can we proceed? Can this go to a governance voting?
We should perhaps start a vote to gather community’s opinion on this one.