Community vote on future direction of Stella product and ALPHA tokenomics

General
1

Outline

  • Background
  • Proposal
  • Rationale
  • Voting
  • Guidelines
  • Next Steps

Background

As outlined in the proposal before, Stella has been working on a new product direction to expand beyond leverage yields into leverage trading. Over the months, we have garnered community feedback about the new product and tokenomics changes.

As the new product is getting closer to mainnet launch, this proposal aims to get community input on the future direction of the product and the ALPHA token.

The Proposal

Stella has been executing on the product roadmap over the past months, and looking to go live on mainnet soon. While the community has been overall satisfied with the new product direction, there have been mixed reactions about the tokenomics changes. The details of the tokenomics changes and product directions have been highlighted in previous governance forum posts here and here.

Given the feedback received from community, this proposal presents two options for the community to align on the best path forward:

  1. Option 1: Launch the new product direction, with the tokenomics changes as explained in the previous proposal here and here.
  2. Option 2: Launch the new product direction, with no changes in tokenomics. This would mean:
  • Launch the new product and direction as highlighted here as Stella v2.
  • No token swap or ticker change, ticker continues to be ALPHA.
  • No inflation in ALPHA token, the circulating and total supply remain unchanged.

Rationale behind the proposal

The key reason to revisit the tokenomics changes are based on concerns raised by the community on:

  • Concerns around inflation in token supply, which dilutes current token holders.
  • Concerns around the poor performance of most token swaps in the past year, including some of the biggest protocols in the space.

Note that regardless of option 1 or option 2, the product direction will continue to stay the same. Ultimately, Stella aspires to offer the complete suite of LeverageFi products in DeFi - encompassing leverage yields and leverage trading.

Voting

To get the community’s input on the proposal, we will be conducting community voting on Snapshot. The community voting would start on 29th Jan 2025, and will last for 1 week.

The timeline are as follows:

  • Proposal goes live for community feedback: Jan 21, 2025
  • Community feedback on governance forum: Jan 21 - Jan 27
  • Onchain holders snapshot taken: Jan 28, 2025
  • Voting begins: Jan 29, 2025
  • Voting concludes: Feb 5, 2025
  • Results announced to the community: Feb 4, 2025

The guidelines of the voting process are mentioned below.

Guidelines

  1. Withdraw ALPHA from centralized exchanges and other chains to Binance Chain or ETH chain before 1AM UTC on Jan 29, 2025, so these ALPHA tokens can be included in the onchain holders snapshot.
  2. Staked ALPHA tokens will be counted in the onchain holders snapshot, so there is no need to unstake the tokens.
  3. Please note that the voting will take place on a fresh snapshot space due to some technical issues in the previous space.

Next Steps

We invite ALPHA token holders to engage with the post, express their opinions, and share any feedback.

A quorum of 10% of the circulating supply of ALPHA tokens and majority votes ‘in favor of Option 1’ or ‘in favor of Option 2’ are required to pass the proposal.

Your contributions are invaluable in shaping the future of ALPHA. Thank you for your ongoing support and involvement in this transformative journey. In case of any questions, please feel free to comment below, or discuss in the governance channel on our discord.

1 Like