The main purpose of this proposal is this: To raise the utility value of $ALD and To make $ALD as deflationary assets like ETH with EIP1559.
This layer 3 strategy is not for to scale AladdinDAO as DeFi platform in order to attract more DeFi dapps except f(x), Concentrator, and CLever. But, it must be EVM compatible to minimize our dev cost and validator running cost.
The current utility value of $ALD are three:
#1. Governance Token as Investment DAO
#2. Staking rewards for xALD holders.
#3. Incentives for Boule as Investment DAO with AladdinDAO Treasury based on each boule’s investment performance.
We don’t have to take the inflationary policy for both #2 and #3 because we buy $ALD for these two by our Investment DAO’s returns.
This is not that bad. But, we should design $ALD as the alternative to $ETH on Aladdin DAO Investment DAO Treasury in long-term.
This is the primary motivation for this improvement proposal.
I summarized the design draft for $ALD as L3 Tokenomics.
The very first key advantage we can capture with this L3 model is we can achieve the cheapest gas fee to run all of our protocols such as f(x), Concentrator, and CLever. This is great protocol advantage to compete with each competitor.
Another key advantage is we can raise strong buying $ALD demands when Web3 market is in bull cycle. This brings large deflationary effects on $ALD tokenomics as we see on ETH with EIP1559.
Also, even when Web3 market is in the bear cycle, market demands on f(x), Concentrator, and CLever will also raise buying power of $ALD which will minimize selling pressure of $ALD in the bear cycle.
Additionally, to allow to use FXN, CTR, CLEV tokens indirectly to pay gas fees on our L3 only through FXN/ALD, CTR/ALD, and CLEV/ALD pools will also generates certain demands to buy $ALD.
If you can design limited supply model with EIP1559 on $ALD tokenomics as L3, this is much more powerful one. But, I have no idea as of now. Thus, when we take this L3 model, $ALD will become inflationary token as same as ETH because AlladinDAO L3 need to set $ALD block rewards for our L3 validators.
If the deflationary effects in the bull cycle can always keeps larger than the inflationary effects in the bear cycle, this L3 strategy will attract more investors to buy ALD in the bear cycle.
For one last thing, base on my analysis, Arbitrum will be our 1st option to build our L3 because this L2 platform have the well-designed software stack to launch our own chain including EVM compatible.
This is not urgent topic for us. But, it’s right timing to start this discussion because L3 is getting popular these days. And, FRAX as L2 inspired us a lot for how we raise the utility value of $ALD.
Here is the news.
The polling process begins now and will end at 23:59 UTC on 31/12/2026. If Quorum is reached, a Snapshot Vote will be put up at 0:00 UTC on 01/01/2027.
For - Aladdin L3 EVM compatible chain will be launched with Orbit on Arbitrum. And the above tokenomics will be applied to the L3.
Against - Nothing.