by 0xd11a019a70986bd607cbc1c1f9ae221c78581f49 (Yemel)
What are NAMEs?
Decentraland NAMEs are a key piece of our identity system. They represent our avatar name in-game and along the dapp ecosystem.
How do they work?
NAMEs are implemented as subdomains of dcl.eth, thanks to ENS protocol. Any wallet can spend 100 MANA to mint a unique NAME. That fee is being burned at the moment.
What is the issue with burning?
Burning MANA coming from fees is a strategy to support the MANA price. However, redirecting the fees to the DAO to later re-invest them in projects that will eventually generate more income is a better strategy. This is how fees work at the marketplace with LAND sales and Wearables primary sales.
Should we stop burning MANA when a NAME is minted?
There must be money coming into the DAO. We can’t just spend and I wish instead of attacking people we would concentrate on ways to increase the value and add more funds so we can help fund and encourage building especially in education, safety, culture. If people would concentrate on the positive of what is being done instead of griping about what is being done and find ways to feed the fire maybe we would get somewhere
As NAME minting becomes more popular as it has recently, I can see how sending to DAO instead of burning seems more beneficial. My concern is what happens to the VP issued to NAMES due to the MANA being burned? If we decide to send the MANA to DAO instead wouldn’t we be essentially printing free VP? If we take out the VP tied to NAMES, then it looses one of its utility.
I believe a slight inflation is needed to keep things fluid. As of now if a person is a whale in regards to VP, they can just sit there and do nothing, but if we return the mana to the DAO rather than burn it, over periods of time their power will slowly diminish as others gain power. This forces them to become active to retain same % of Voting Power.
Whales are needed Tuda lol, who else carries risk when we don’t want or can. I see what you are saying however by this logic we would keep printing VP where whales can continue to obtain and in the long term our names are then less valuable.
My concern with sending the fee to the DAO is capital allocation - will the proceeds from Name mints be spent prudently and in a way that is superior to just burning the MANA?
Burning MANA from Name mints incrementally increases the value/scarcity of all other MANA remaining in the circulating supply. A higher MANA price results in a net positive to the ecosystem as DAO revenue will increase across the board and will almost certainly bring in many new users.
Someone told me to mint a name is useless here, but thanks to Decentraland i am working eventually for other people as individual 3D artist, so after i read this post i know now if i mint my name that helps to the community…
I never said anything against the whales, but making them maintain their percentage of VP by adding a slight inflation is good. We need some more liquidity when it comes to Voting Power. I think this could help that.
You are failing to miss the point of liquidity, with less supply, you also come to liquidity issues which can completely undermine MANA from being used as a currency. Without Liquidity, MANA will just become another store of value. Sure the price will increase, but will people use it?
So far, 36,785 Decentraland Names have been claimed equating to 3,678,500 MANA ~ ($1,410,000). Optimistically, even if 2,500,000+ Decentraland Names were to be minted (same as ENS currently), this would only be ~18% decrease in current circulating supply. In theory, this will offset the increase in supply from the DAO vesting contract of about 158,400,000 MANA over the next 7+ years. (Decentraland's Vesting Dashboard)
I don’t see liquidity being a risk, simply number go up.
Good time to mint a name. Y’all didnt want to peg it to 100usd or so. 1 dala 1 vp now here we is. Mana going down us with low vp minting names to get some vp. I second and back @Crypt_Sannin on all sentiments. Let it burn.
@yemel@Nacho is there a way to designate the funds from names minting into a separate location than the general dao treasury?
I thought the main concern was inflating the total VP counts but maybe if these are still removed from the ecosystem in some way then it is materially the same?
One amazing idea @ile brought up initially was potentially having a dao delegation fund to increase vp equity. It would be interesting if the burned names fund could be used as part of this delegation fund? The idea was potentially to use dao reserves to delegate VP in some manner to those looking to receive delegation or who have earned delegation. We never settled on any specific process or metrics to assign the delegation but it is interesting to reconsider in this context of the names mana.