Polkadot, is considering a new proposal to burn revenues generated from sales of unused Coretime in order to benefit DOT token holders. Coretime refers to the basic unit for processing transactions on Polkadot.
According to a new Request for Comments (RFC) titled “Burn Coretime Revenue,”the objective is to introduce a deflationary mechanism for the DOT token, countering existing inflationary pressures.
DOT is currently designed as an inflationary utility token that is minted over time. By burning Coretime sales revenue, Polkadot aims to balance this inflation and make DOT more appealing to hold long-term.
The rationale behind this proposal is that removing these funds from circulation through burning, instead of diverting them to the Polkadot Treasury, would create a clear deflationary force.
Moreover, Prices paid by Coretime buyers would represent true costs, rather than secondary benefits to other network participants.
The proposal has received positive feedback from developers, who believe that burning Coretime revenues could create meaningful deflationary pressure on the DOT token.
Although the initial revenue impact may be limited, proponents believe that this could have a positive impact on the token’s inflationary narrative.
Furthermore, this proposal follows a similar path to Ethereum, which transitioned to a deflationary model after burning revenues from network fees.
However, Polkadot seems to be considering a parallel path to attract investors and align network incentives.
