【Discussion】Phase-Based Treasury MNT Burn (3–8% Over 12–24 Months)

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1. Proposal Type

Pre-MIP Discussion

Seeking community feedback prior to formal governance submission.

2. Executive Summary

This proposal suggests that Mantle DAO consider implementing a:

Phase-Based Treasury Burn Mechanism

Key parameters for discussion:

  • Applies only to unallocated / non-committed treasury MNT

  • Target size: 3–8% of total supply

  • Execution period: 12–24 months

  • Fully DAO-governed, transparent, and on-chain verifiable

The guiding principle of this proposal is:

Predictability over magnitude

Rather than a one-time burn, this framework focuses on structured, phased supply management.

3. Background & Rationale

Mantle possesses one of the strongest treasury positions in the market. However, the structural linkage between treasury strength and token value capture can be further enhanced.

Market precedents suggest that structured supply management mechanisms contribute to:

  • Long-term supply expectation alignment

  • Increased holder confidence

  • Reduced perceived supply overhang

  • Stronger value narrative sustainability

Examples include:

The key insight from these models is not the size of the burn, but the credibility and predictability of the framework.

4. Proposed Framework (Illustrative)

4.1 Scope

  • Limited strictly to unallocated / non-committed treasury MNT

  • No impact on:

    • Ecosystem grants

    • Operational runway

    • Strategic reserves

4.2 Scale

  • Approximately 3–8% of total token supply

  • Implemented in clearly defined phases

Illustrative structure:

  • Phase 1: ~2%

  • Phase 2+: Subject to DAO review and treasury health assessment

  • Hard upper cap: 8%

4.3 Timeline

  • Executed gradually over 12–24 months

  • Pre-announced schedule

  • Clear maximum burn ceilings

  • Periodic transparency reporting

This avoids market uncertainty while maintaining governance flexibility.

4.4 Governance & Transparency

  • All parameters approved by DAO vote

  • Publicly announced execution schedule

  • Fully traceable burn addresses

  • Recurring treasury health disclosures

5. Expected Outcomes

Potential Benefits

  • Improved supply expectation management

  • Reduced long-term supply overhang concerns

  • Strengthened long-term holder incentives

  • Institutional signaling of disciplined capital management

Considerations & Risks

  • Reduced treasury flexibility

  • Need to maintain sufficient strategic reserves

  • Burn alone does not replace ecosystem growth

Therefore, this framework is intended to complement — not substitute — continued ecosystem expansion and revenue growth.

6. Discussion Questions

  1. Is the 3–8% range appropriate?

  2. Is 12–24 months an optimal execution window?

  3. Should a minimum treasury reserve threshold be codified?

  4. Should burn execution be linked to revenue or growth metrics?

7. Next Steps

If the community expresses support:

  • Conduct a Temperature Check

  • Perform treasury stress testing and scenario modeling

  • Draft a formal MIP

  • Proceed to Snapshot vote

8. Call for Administrative & Community Action

If there is constructive support from the community, we respectfully request:

  • Mantle administrators and core contributors to assist in initiating a formal governance vote process.

  • Official Mantle X (Twitter) accounts and ecosystem channels to help amplify this discussion, encouraging broader community participation and transparency.

This proposal aims to initiate a thoughtful dialogue around long-term supply discipline and sustainable token economics.