Forwarded from Store of Value $VAL
Community Proposal: Transition from Staking Rewards to Burn-and-Pool Model for VAL Token
Overview
This proposal recommends shifting the current utility mechanism of the VAL token from a staking rewards model to a deflationary burn-and-pool system. Instead of distributing SOL rewards to single-sided stakers, the game-generated SOL will be used to add liquidity to the VAL/SOL pool while burning VAL tokens reducing total supply and increasing scarcity.
Current Model
Right now, the plan for the current model is a portion of the SOL acquired through game activity (entries, fees, etc.) is used to buy VAL tokens and redistribute them as staking rewards to those who lock up $VAL.
While this incentivizes holding, it introduces constant sell pressure as stakers claim and offload rewards, leading to unsustainable token emissions over time. *(this has been proven by the existing LP rewards on Raydium)*
Proposed Change
We propose reallocating this SOL in the following way:
Buy VAL tokens from the open market.
Immediately burn the purchased VAL tokens *(permanently removing them from circulation).*
Add the remaining SOL directly to the liquidity pool (LP), increasing the value and depth of the ecosystem.
Why This Is Better for the Ecosystem
-Deflationary Pressure – VAL’s supply decreases with every burn, making remaining tokens more valuable.
-Real Yield, Real Scarcity – Token value becomes directly tied to the success of the game, not emissions.
-Long-Term Play – Selling VAL becomes a high-risk decision. Once burned, that supply is gone potentially forever.
- Strengthened LP – Deepened liquidity ensures smoother trading and a stronger price floor for VAL holders.
- No More Claim-and-Dump – Ends the cycle of inflation and reward dumping that hurts long-term holders.
What This Means for You
If you’re holding VAL now, your token's scarcity and potential value increases over time creating a true store of value.
You’ll no longer earn staking rewards, but the value of your holdings will be supported by increasing liquidity and decreasing supply.
This aligns incentives with long-term belief in the project, and rewards diamond hands.
Closing Thoughts
I believe this change puts VAL on a path toward long-term sustainability, while introducing a powerful deflationary mechanic tied to game activity.
As the game succeeds, you don't just hold a token you hold a piece of a shrinking pie.
I welcome community feedback and will move to vote pending discussion.
Overview
This proposal recommends shifting the current utility mechanism of the VAL token from a staking rewards model to a deflationary burn-and-pool system. Instead of distributing SOL rewards to single-sided stakers, the game-generated SOL will be used to add liquidity to the VAL/SOL pool while burning VAL tokens reducing total supply and increasing scarcity.
Current Model
Right now, the plan for the current model is a portion of the SOL acquired through game activity (entries, fees, etc.) is used to buy VAL tokens and redistribute them as staking rewards to those who lock up $VAL.
While this incentivizes holding, it introduces constant sell pressure as stakers claim and offload rewards, leading to unsustainable token emissions over time. *(this has been proven by the existing LP rewards on Raydium)*
Proposed Change
We propose reallocating this SOL in the following way:
Buy VAL tokens from the open market.
Immediately burn the purchased VAL tokens *(permanently removing them from circulation).*
Add the remaining SOL directly to the liquidity pool (LP), increasing the value and depth of the ecosystem.
Why This Is Better for the Ecosystem
-Deflationary Pressure – VAL’s supply decreases with every burn, making remaining tokens more valuable.
-Real Yield, Real Scarcity – Token value becomes directly tied to the success of the game, not emissions.
-Long-Term Play – Selling VAL becomes a high-risk decision. Once burned, that supply is gone potentially forever.
- Strengthened LP – Deepened liquidity ensures smoother trading and a stronger price floor for VAL holders.
- No More Claim-and-Dump – Ends the cycle of inflation and reward dumping that hurts long-term holders.
What This Means for You
If you’re holding VAL now, your token's scarcity and potential value increases over time creating a true store of value.
You’ll no longer earn staking rewards, but the value of your holdings will be supported by increasing liquidity and decreasing supply.
This aligns incentives with long-term belief in the project, and rewards diamond hands.
Closing Thoughts
I believe this change puts VAL on a path toward long-term sustainability, while introducing a powerful deflationary mechanic tied to game activity.
As the game succeeds, you don't just hold a token you hold a piece of a shrinking pie.
I welcome community feedback and will move to vote pending discussion.
❤3👍3
Cast you vote...
Anonymous Poll
83%
Use SOL from dApp to buy and burn $VAL (deflationary)
17%
Use SOL to buy $VAL for Staking Rewards (inflationary)
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