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 an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish, a cryptocurrency exchange, which in turn is owned by Block.one, a firm with interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets including bitcoin and EOS. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.