[Proposal] Dual Burn 1:1 (Market ↔ Co-Founder)

Title

Dual Burn Mechanism: 1:1 Burn from Co-Founder Allocation Mirrored to Protocol Burns

Summary

Each time the protocol buys back WLFI on the open market with protocol-owned liquidity (POL) fees and burns it, an equal amount (1:1) is burned from the Co-Founder allocation (unreleased, non-circulating). This aligns insiders with the community and strengthens long-term deflation.

Background

•	WLFI currently directs POL fees to buyback-and-burn from market. Community bears the burn while Co-Founder reserves appreciate relatively as supply falls.

•	Dual Burn fixes this asymmetry: **market burn is mirrored 1:1 from the Co-Founder pool**.

Rationale

•	**Fairness:** Insiders share the burden of deflation with holders.

•	**Economics:** Supply contracts from both circulating and reserved sides.

•	**Trust:** No passive benefit from scarcity; leadership stands in the same boat as the community.

Implementation

1\. Smart-contract hook: every protocol burn event (market buyback → burn) **automatically** triggers **an equal burn** from the designated Co-Founder allocation addresses.

2\. Public tracking: publish the Co-Founder allocation wallets; log every paired burn on the governance portal.

3\. Effective date: on passage; not retroactive.

Voting Options

•	**FOR** — Implement Dual Burn (1:1 market : co-founder).

•	**AGAINST** — Keep current structure without Dual Burn.

•	**ABSTAIN**

Expected Impact

Short-term: stronger credibility and alignment.

Long-term: enhanced deflation, sustained holder confidence, broader adoption.

Future Expansion (for discussion)

After successful implementation of 1:1, the community may consider an expanded model (“1:2:1”): for every 1 WLFI burned from market buybacks, burn 2 WLFI from the Co-Founder allocation and 1 WLFI from the pre-sale lockbox. This would require a separate proposal once feasibility and safeguards are reviewed.

3 Likes

What’s the benefit of this to the founder? I think the founders are going to run away.

1 Like

The benefit for founders is not about “losing tokens,” but about building trust and alignment. Right now, every market burn increases scarcity for circulating holders, while founders’ reserves grow in relative value without sharing the same burden. Dual Burn corrects this by showing founders stand in the same boat as the community.

This strengthens global confidence in WLFI because it proves leadership is willing to sacrifice alongside everyone else — not to profit passively from deflation, but to share responsibility for it. That credibility increases adoption, market trust, and long-term value. In the end, both holders and founders benefit when WLFI is seen as fair and transparent.

2 Likes