On the 17th of August 2019, 15 POA Core validators submitted votes on the latest emission fund ballot. This on-chain ballot, which can be voted on every 3 months, determines what happens to additional POA tokens emitted as part of the consensus process. For each validated block, 1 POA token is distributed to the validator who seals the block, and a second token is added to the emission fund. This results in more than 1.5 million tokens sent to the emission fund every 3 months.
During the voting process, validators can select between 4 possible options:
- Send: Send the emission fund to the POA Foundation’s Multisig wallet.
- Burn: Burn the POA tokens from the emission fund, thus removing them from the circulating supply of all POA.
- Freeze: Freeze the current total pool of POA in the emission fund until the next vote.
- Abstain: The user does not select an option, thus abstaining from the vote.
This is the 3rd emission fund vote, and each has had a different result. In the first vote, validators chose to freeze the fund. This meant the tokens stayed in the fund and continued to accumulate. In the second vote, validators chose to send the funds to the POA Foundation. This resulted in many improvements to the BlockScout Explorer, which are detailed below.
In the current vote, validators chose to burn the fund, resulting in the destruction of ~1.55 million POA tokens. Burning is seen as a way to control inflation and influence the value of the POA token. If the supply of POA tokens is reduced, the value of POA will have the opportunity to rise. In this latest vote, 4 validators (27% of voters) voted to freeze the funds, while 11 validators (73% of total voters) voted to burn the funds.
Emission Fund Mission
The emission fund is an innovation by the POA team to create a model of self-sustainability for the network. In the previous vote, emission funds contributed 3,170,268 POA to the POA Foundation Multisig wallet. These funds have been used to support the ongoing sustainability, promotion and user adoption of the BlockScout explorer.
During the last three months we’ve made some major updates to BlockScout. The V2 release includes a total redesign and overhaul for the explorer. This progress was possible thanks to the emission fund distribution.
We will be creating a new proposal for the next emission fund, and look forward to making a case of sending the POA funds to the POA Foundation Wallet, allowing for additional innovation and expansion of the POA ecosystem.
Emission Ballots Voting results
Here are the results from the latest emission ballots vote
|Burn||John D. Storey|
|Abstain||John H. LeGassic|