Gaming Protocol Aavegotchi Members Are Voting to End Multiyear Token Sale, Which Could Limit GHST Supply
If passed, roughly $33 million DAI will be allocated to support the development of the Aavegotchi ecosystem.
Community members of the crypto collectibles game Aavegotchi are voting on whether to end a roughly two-and-a-half-year contract sale of its native GHST token, a move that, if successful, would prevent the token’s supply from increasing further and support the ecosystem’s development.
The vote will determine whether to close a smart contract that provided liquidity for the minting and burning of GHST, the ecosystem’s base currency and governance token that has a market cap above $76.6 million and a total supply of 54.6 million. If this vote passes, which is on its second day of voting, a secondary on-chain vote will decide whether to let AavegotchiDAO spend the DAI stuck in that smart contract.
$33 million DAI tokens that were spent to mint GHST in the contract could go toward developing the gaming protocol’s ecosystem, if the votes pass. Earlier, the community agreed to split the sum across four different pillars: liquidity, the decentralized autonomous organization’s (DAO) treasury, the gaming studio Pixelcraft and protocol rewards.
The motivation for ending the smart contract is two-pronged, according to Jesse Johnson, founder of Pixelcraft Studios, who said in an interview with CoinDesk, “We could derisk from DAI – not be reliant on a different ecosystem at all and … fund our own destiny.”
As it stands, Aavagotchi community members are almost in unanimous support for the vote, with roughly 4.8 million GHST, or 8.8% of the total supply, cast in favor. The vote is set to end on Friday.
According to data from blockchain analytics firm Nansen, Aavegotchi ranked third among all DAOs by number of voters participating in governance processes in the past six months with almost 5,000 voters.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.