The K9 Finance DAO proposes adjusting the KNINE token allocation for the community airdrop program and utilizing the reclaimed tokens for a strategic burn. The original allocation of approximately 7% of the total KNINE supply was intended to reward users for their engagement with K9 products and the Shibarium ecosystem. At current prices, this allocation is equivalent to approximately $300,000 USD.
Given the current distribution patterns and user engagement levels, this proposal suggests reducing the total airdrop allocation by 70%, maintaining meaningful rewards for active users while mitigating potential sell pressure on the token that may happen from reward amounts that are much higher than the industry average for like-minded campaigns. The reclaimed 4.9% of the total supply will be used for a strategic token burn, creating significant marketing opportunities and bolstering the token’s value proposition.
(2) Benefits to K9 Finance Community
Optimized Rewards for Contributors:
By focusing the airdrop on the approximately 500-1000 active wallets, the reduced allocation ensures that active contributors still receive meaningful rewards while avoiding over-distribution. The management council could still use the tokens strategically to reward Shibarium users as well, but with slightly smaller amounts
Mitigation of Sell Pressure:
A smaller airdrop reduces the likelihood of significant token sell-offs
Strategic Marketing Opportunity:
A publicized burn event demonstrates the DAO’s commitment to reducing token supply, creating scarcity
The reclaimed tokens allow the DAO to execute impactful marketing events and/or strategic burns, creating flexibility for initiatives that enhance community engagement and token value.
Enhanced Token Economics:
The burn event decreases the circulating and total supply of KNINE
(3) Proposal Details
(a) WHAT
The proposal suggests the following:
Reduce Airdrop Allocation: Decrease the allocation from 7% of the total KNINE supply to 2.1%, effectively reducing the amount distributed by 70%. This would be the approximate amount of tokens that are already vested from the 2 year linear vest period that the management council would already have at their disposal for the campaign
Token Burn: Use the reclaimed 4.9% of the total KNINE supply for an immediate and publicized burn event. To do this immediately, the vesting schedule for those tokens would need to be cancelled, the tokens would go to the k9safe.eth DAO wallet, and from there, the burn function could be executed for that exact number of tokens
Token Usage: Give the management council the discretion to use the reclaimed 4.9% of the total KNINE supply for future marketing events and/or token burns. To do this immediately, the vesting schedule for those tokens would need to be cancelled, the tokens would go to the k9safe.eth DAO wallet.
(b) WHO
Stakeholders impacted by this proposal include:
Active KNINE Users: Approximately 500-1000 wallets will continue to receive meaningful rewards for their engagement with the KNINE ecosystem.
KNINE Token Holders: All holders benefit from reduced supply and strengthened token economics.
K9 Finance DAO Community: Gains significant marketing benefits and enhanced value perception through the burn event.
Shibarium Users: would still participate in the airdrop rewards
(c) WHERE
Airdrop Distribution: Adjusted rewards will continue to be distributed to eligible wallets through the existing mechanism that the management council is planning
Token Burn: The burn event will be conducted on-chain, with visibility for the entire community and broader blockchain audience.
Token Usage: The reclaimed tokens will be transferred to the k9safe.eth DAO wallet and managed at the discretion of the management council for marketing events and/or token burns.
(d) WHEN
Upon approval, the updated airdrop allocation will be implemented immediately, adjusting the remaining 15 months of the 24-month vesting schedule.
The token burn will occur shortly after approval, with a coordinated marketing campaign potentially executed by the community and/or sub-DAO if deemed appropriate
The reclaimed tokens will be transferred to the k9safe.eth DAO wallet shortly after approval. Future marketing campaigns or token burns will be executed as determined by the management council.
(e) HOW
Adjust Vesting Contracts:
Cancel the 24 month vest and claim all 7% of tokens for the airdrop allocation
2. Conduct the Token Burn:
2. Reallocate Tokens:
Reclaim the unused 4.9% allocation and execute the burn on-chain.
Cancel the vesting schedule for the remaining 4.9% allocation and transfer the tokens to the k9safe.eth DAO wallet for management council discretion.
Launch a Campaign:
Highlight the burn event’s significance through social media, community channels, and partnerships.
(4) Impact Assessment
Short-Term Impacts:
Liquidity and Stability: Reduced airdrop allocation minimizes immediate sell pressure, stabilizing the market.
Marketing Momentum: The burn event generates buzz and attracts attention to the K9 Finance ecosystem.
Sustainable Growth: Focused rewards incentivize active participation, supporting long-term community engagement.
Risks and Mitigation:
Risk of Community Backlash: Some users may perceive reduced rewards as negative; however, clear communication about the benefits of the burn and enhanced token value can mitigate this risk.
Market Conditions: Price volatility during the burn event is a potential concern, but the reduced circulating supply should offset adverse effects.
Metrics for Success:
Token Burn Visibility: The event garners significant engagement and media coverage, enhancing the DAO’s reputation.
Marketing Impact: Future marketing campaigns or strategic burns using the reclaimed tokens can enhance the DAO’s reputation and attract new participants to the ecosystem.
Reduced Sell Pressure: The KNINE token maintains or increases in value following the adjustment.
Increased Community Participation: Active wallet users remain incentivized to engage with K9 products.
This proposal ensures that the K9 Finance DAO maximizes the impact of its token allocation while addressing both immediate and long-term objectives for the community and ecosystem. We invite feedback and discussion to refine and finalize the approach.
As an active KNINE holder and Shibarium user, I support this proposal. Rewarding those that show proven interest and engagement all the while appeasing the broader community that has a “burn token go up” mentality seems like a win win.
I support this proposal. An airdrop to holders is not a significant incentive to the market IMHO. Keeping the incentive in place however is important, especially for those that have been active community members, so I like that the airdrop remain under this proposal but would be more targeted to those participants. Broadly, I agree a Burn event would have a greater impact, short and long-term, on the Knine token. It will bring many more eyes to the project and create a fomo effect. Once many of these new eyes experience bone crusher, it should also increase long term adoption of the platform.
I think this proposal raises some interesting points. While K9 Finance is fundamentally a utility-driven project and not a meme token, I’m not entirely against the idea of token burning. That said, I believe we need to carefully evaluate its implications and potential benefits.
Utility vs. Marketing
K9 Finance’s strength lies in its utility. real yield staking, governance, and liquid staking. Token burning might not align with that core mission. However, I do see its potential value as a marketing tool. A controlled burn mechanism could generate buzz.exe, attract new users, and create a sense of momentum around $KNINE, especially during a critical growth phase.
Governance and Long-Term Focus
One concern with token burning is its impact on governance. Reducing the circulating supply might inadvertently centralize power among fewer holders, potentially undermining the decentralized nature of the DAO. Moreover, while burning tokens could create short-term price movements, the long-term success of K9 Finance depends on utility, user engagement, and partnerships.
Supply Context
With 7% of the supply vested over two years (3.5% annually), the relative impact of burning tokens could be minimal compared to the remaining presale and KOL allocations, which will fully vest within a few months. This means the burn could be more symbolic than transformative unless paired with other strategies to enhance utility.
Very well-written, thoughtful proposal. Certainly doable, as long as the discretion of the retroactive airdrop allocations are maintained with the Management Council
Interested to see how the community feels about this, as there are always opportunity costs associated with burning tokens and the community needs to think critically if burn marketing > token marketing for user acquisition
Given the predisposition from the broader Shib community that burns are great I am personally torn
I definitely like the idea and it’s very well laid out. 70% is such a huge decrease from what was originally proposed, and a lot of us have been active for months to a year now to show case our loyalty to the project. I’m just wondering can it be done better….
In essence, this suggestion would remove a lot of supply from the community hands that have earned it. Rather than burn KNINE supply, K9 needs to market the product better, don’t penalize the community…. The burden is on the DAO to increase adoption.
I like the idea of reducing the airdrop percentage and targeting active users for the rewards to reduce potential sell pressure.
I don’t think a burn is the best use of the reclaimed funds, even with the marketing bump it could provide within the SHIB community.
I would be interested to find out if these funds could be redeployed to accelerate the implementation of the roadmap into the future.
I support this proposal with the understanding that:
a burn will not impact $Knine token price directly as a function of moving tokens to the dead wallet
burns are not my preferred use of funds, but past efforts to explain this were met with… resistance (see point above)
this burn will not generate the “marketing buzz” required to substantially impact the chart situation, and as such this proposal appears to have been written with that understanding and to be more focused on addressing sales pressure then generating new buys, which is a thing worthy of attention.
the idea that a slightly reduced supply “bolster’s the token’s value proposition” doesn’t land for me as your typical “degen” or “ape” is often not diving deep into the burn and supply ratios, as the narrative of a short-squeeze or supply shock marketing require a burn above 90% or more to really ramp the narrative into FOMO, in my opinion.
All this to say that I appreciate the effort and ideation in this proposal.
If passed, I would need to figure out the role of the Sub-DAO in terms of addressing the optics of reducing the supply of promised rewards by 70%.
After watchijg the vested tokens sell pressure over the last few months I would have to 100 percent agree with this proposal. Reducing sell pressure should be our number 1 goal and rewarding the active users more should benefit our community
I am strongly against burning more k9, given its use case. With that said, I would be all for the reduction in the airdrop. We could allocate the same 4.9% to the treasury. This would allow us to really generate some hype in the upcoming year. I believe in the future of shibarium as well as k9. I would hate to see that many coins burned forever. Our current price is only temporary.
Good proposition to burn K9 tokens for huge marketing. Also good idea to reward K9 whales under Shibarium network, but please don’t reduce the supply that much. -70% from the normal reward is a big « loss » for those who are committed to support K9 since weeks and months…! Thanks
I do like a nice burn.
In the interest of Knine DAO. I think those Knine coins would be better served by giving them to the Sub DAO for advertising events that could bring in new holders.
Making a quarterly allowance for Advertising would give us a longer exposure time than just one burn event.
We need more activity and events to bring exposure to Knine. What better way than to be giving away Knine to new users.
Yes we do expose are self to potential sellers but the positive exposure should off set the negative.
Using the Knine we already own also save advertising cost by not having to purchase.
Bottom line I believe our sub DAO could use this coins more efficiently to gather more users and exposure.
The % of the allocation may be lower but I don’t believe the 70% would be needed.
I’m in support of this proposal, it’s very well written. I’m all for burns and if there’s a better way to make use of the 4.9% allocation then I definitely would be interested to hear from the community.
Reading some of the suggestions above, I like the idea of directing it towards the Sub-DAO, even if it’s a portion of the amount. However I am against just giving it to new users; most of them will just sell off and at the point, you might as well stick to the original airdrop plan and give it back to the current holders of KNINE.
Very well written and thought out proposal.My thoughts are always around good business decisions for the project and DAO. Burning Treasury and marketing tokens I have aways been against. This proposal is looking to burn tokens that a large percentage of would be dumped on the market . Which would further reck the chart. This could help marketing as well within Shibarium as burns really get them excited. Reduction in supply can increase price whether significant or not. I don’t see how this proposal could have any negative effects on our project or DAO.
As I mentioned in my earlier response, K9 Finance is fundamentally a utility-focused project, not a meme token. While I don’t believe token burning is the best strategy for K9 in the long term, I do recognize its potential as a short-term marketing tool. It could generate some excitement and attract new users during this critical growth phase.
That said, I think we can adopt a balanced approach that leverages both marketing impact and utility reinforcement. My suggestion would be:
Burn 2% of the allocated tokens as part of a strategic marketing campaign to create buzz and attract attention.
Allocate the remaining 2.9% to liquidity pools(on both ETH and Shibarium), with the liquidity locked by the DAO. This move would strengthen the market by increasing stability and reducing slippage, while also signaling long-term commitment to the ecosystem.
This approach aligns better with K9 Finance’s utility-driven mission by emphasizing sustainable growth over short-term hype. Adding liquidity ensures that these tokens remain a valuable resource for the ecosystem rather than being removed permanently. It also helps address concerns about market stability and accessibility, making $KNINE more attractive to both existing and potential holders.
The rest of Couch’s proposal, as it stands, seems well thought out and addresses important areas like airdrop allocation. Combining these strategies, controlled burning for marketing with liquidity enhancements for long-term utility, offers a more holistic solution that balances immediate visibility with sustainable growth.