osmosis

Prop 1003: Withdraw and Burn Levana Liquidity

This proposal requests the withdrawal of OSMO currently deployed from the community pool funding to Levana, and the sending of the recovered OSMO to the null address to burn these tokens.

Motivation

The Levana Foundation is winding down, as announced in their recent blog post, resulting in a shift of Levana Perps into maintenance only.

The original community pool deployment of OSMO to Levana in Proposal 655 was intended to support an active ecosystem participant. Given Levana’s strategic shift and reduced Osmosis engagement, continuing to hold or reward this deployed OSMO no longer aligns with community value objectives.

Burning the recovered OSMO is proposed rather than returning it to the community pool, as the community pool already holds significant OSMO, resulting in a transparent reduction in circulating supply.

Specification

  1. Signal the holding subDAO to withdraw all OSMO currently deployed into Levana.
  2. Signal the transfer of OSMO to the null address

Rationale

  • Aligns with the winding-down status of Levana as communicated by the Levana Foundation.
  • Removes community pool exposure to a protocol that is no longer actively developing within the Osmosis ecosystem, which increases risk on community pool funds.
  • Reduces circulating OSMO via burn.

Forum Post: https://forum.osmosis.zone/t/withdraw-and-burn-levana-liquidity/3985