The Lisk community is gearing up for an important decision on whether to burn 100 million LSK tokens. Starting September 27, community members will have a seven-day window to vote on this significant matter. The vote will determine if these tokens, representing 25% of the total LSK supply, should be burned or allocated for community incentives until 2033.

This voting event is the first major decision for the newly-formed decentralized autonomous organization, Lisk DAO. Recently, Lisk DAO migrated to the Optimism Superchain to enhance access to the network’s products within the Ethereum ecosystem.

If the community opts to burn the tokens, the total LSK supply will reduce from 400 million to 300 million tokens. On the other hand, if the community decides to allocate the tokens, they will be vested into the Lisk DAO Fund from 2027 to 2033. This allocation aims to support community initiatives, growth campaigns, and innovative projects over the next decade.

Lisk’s chief project officer, Dominic Schwenter, emphasized that the Onchain Foundation (formerly Lisk Foundation) will not participate in the vote to ensure a fair and community-focused decision-making process.

First launched in 2016, Lisk revealed its migration plans in late 2023. According to the team, the move was driven by the need to upgrade the Lisk ecosystem. Initially designed as a layer-1 chain, the network aimed to become more cost-effective for users and developers.

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