Bullish
Secret Network Proposal Dilutes Existing Supply to 20% via Secondary Offering
2026-07-28 22:00:05
Draft proposal suggests massive secondary offering diluting current supply to 20%, distributing new tokens to validators and developers without chain migration.
Woofun AI reports that a draft proposal from the Secret Network community outlines a restructuring plan following Secret Labs' withdrawal. The initiative proposes establishing a new entity to manage Secret L1, executing a one-time large-scale secondary offering to distribute newly minted tokens to validators, developers, relayers, and bridge hack victims. This mechanism aims to dilute the existing token supply to 20% without necessitating a chain migration or excluding current holders, while implementing protocol-level taxes to sustain development funding.
WOOFUN AI
Impact Assessment · Quick Read
Diluting existing supply to 20% represents a radical shift in tokenomics that could significantly impact holder sentiment and market valuation. The reliance on protocol-level taxes for funding introduces ongoing sell pressure mechanisms, potentially altering the asset's long-term utility profile. If approved, this restructuring may centralize control under the new entity while attempting to preserve network continuity without a hard fork.
Generated by WOOFUN AI · For reference only, not investment advice
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