Lisk Aims to Reduce Token Supply with Bold DAO Shutdown Plan

Lisk Proposes Bold Move to Halt DAO and Burn 100 Million LSK Tokens

The Lisk team has unveiled a governance proposal to halt its Decentralized Autonomous Organization (DAO) operations and burn 100 million LSK tokens. This move would significantly reduce the total supply of LSK from 400 million to 300 million.

The proposal targets the 100 million LSK allocated to the DAO treasury for the period 2027-2033, which would be burned, effectively removing them from circulation permanently. Additionally, around 47 million LSK currently in the DAO treasury or allocated through 2026 would be transferred to Lisk Ltd., the company behind the project.

The plan also includes shutting down the governance forum and removing the penalty for early unstaking of LSK tokens. However, users would still need to wait three days before withdrawing their staked tokens.