Posted by Ambire Wallet on September 8th, 2022
Ambire Wallet proposes governance vote to ensure stability for its token and piece of mind for its users
🗳 Our first official Governance Vote for Ambire Wallet is set to kick-off tomorrow at 12 PM (UTC) and last until September 16, 2022. xWALLET holders will decide on both the burn rate for withdrawing staked WALLET tokens, as well as the lock-up period for unbonding.
Check-out the why-s and how-s below 👇
Why a vote & why now? 🤔
Well.. there are a couple of reasons why the Ambire team is proposing its first Governance Vote now:
1️⃣ Firstly, the WALLET token is no longer in its infancy: released back in December 2021, it has already developed its own ecosystem of holders, users and stakers. This means it’s high time for the actual WALLET token owners to decide how to manage their Ambire assets (instead of the Ambire team).
And even though the WalletDAO is still in prep mode, this vote can be the perfect opportunity to have a pre-DAO exercise in governance, to better understand and calibrate for when the actual organization will be formed.
2️⃣ Secondly and more important, the Ethereum Merge is imminent and poised to change the balance of power for the ETH token ecosystem. And with a lot of Merge FUD already floating in the crypto space, it’s important we protect Ambire users and assets from possible market fluctuations.
🧐 What will we vote on?
Two issues will be put-up for voting, in one single call-out:
- Increase WALLET burn rate from 30 % to 50%
- Increase lock-up period for staked WALLET tokens from 20 to 60 days.
The burn rate is a deflationary mechanism implemented to ensure WALLET token stability. Right now, Ambire Wallet users who are eligible to receive rewards have two options for claiming them: either stake the full amount of tokens with a 20-day lock-up period, or claim the WALLET rewards directly to their balance, with a 30% burn. Due to current market conditions, we believe it in the best interest of all WALLET token holders to increase the burn rate to 50%.
The proposal to change the lock-up period for staked WALLET tokens (from 20 to 60 days) is meant to help reduce the amount of circulating WALLET and thus incentivize the token owners to hold them for longer periods of time, earning even more rewards for them.
🤓 How can I vote?
That’s an easy one: you can vote if you are a xWALLET (staked WALLET) holder.
Anyone who owns $WALLET staking tokens has the right to cast their opinion in this governance vote. A snapshot for the vote will be live tomorrow, September 9th, staring with 12 UTC, at this link.
To cast your vote, all you need to do is connect a crypto-wallet where you have xWALLET tokens and choose your answer — it’s a Yes/No choice, so easy-peasy 😃
☑️ What happens if the vote passes?
If the proposals are confirmed through voting, the changes for claiming WALLET tokens with the new burn rate and the new staking lock-up period will go into effect within 5 business days of the governance vote conclusion.
We’re counting on you to help us guide this, so make sure you weigh you position and cast your vote accordingly 🤝