Summary:
The proposal aims to establish a set of continuous, protocol-native PRL burn mechanisms to accelerate the path toward burning 50% of the total PRL supply (500,000,000 PRL).
Rationale:
Two major burn events have brought the protocol to its current state:
- PGP-37 (Phase I) burned 26,371,873.81 PRL through one-time operations: boughtback MIMO & retroactive inflation burn from January 2024.
- PIP-65 accelerated the end of the MIMO→PRL migration to April 15th, 2026, resulting in the permanent burn of all unmigrated PRL remaining in the migration contract: 370,925,853.61 PRL burned.
Together, these two proposals have burned a total of 397,297,727.42 PRL (39.7% of total supply), leaving 102,702,272.58 PRL to reach the 50% milestone (500,000,000 PRL burned).
Phase II shifts from one-time burns to recurring, protocol-native burn flows. Three sources have been identified:
I. Monthly PRL Buyback
The DAO will allocate $20,000/month from its Treasury holdings to purchase PRL on the secondary market. Buybacks will be executed by the DAO Multisig via CowSwap TWAP orders to minimize market impact. This commitment runs for 3 months, after which we will present a review and an updated Phase III proposal to adjust the rate based on treasury health, market conditions, and overall progress toward the 50% target.
II. sPRL1 Slashing Burns
All past & future PRL received by the protocol as a result of sPRL1 slashing events will be burned directly, rather than being redirected to the DAO Treasury. This creates a natural deflationary pressure that is intrinsically aligned with the protocol’s enforcement mechanisms, and ensures that any value penalized from stakers is permanently removed from circulation.
III. Unclaimed PAR Recycled into PRL Burns
PAR distributions that remain unclaimed after 12 months will be recovered by the DAO in accordance with existing protocol rules. Under this proposal, rather than sitting idle in the Treasury, recovered PAR will be used to buyback PRL on the open market via CowSwap and burn the proceeds. This closes a potential value leak from the protocol and ensures unclaimed emissions contribute directly to the burn program.
Means:
- Human Resources: Multisigners will need to sign and execute monthly buyback and burn transactions, as well as sPRL1 slashing burn transactions on an event-driven basis.
- Treasury Resources: $60,000 USDC/USDp (3 × $20,000 monthly buybacks) + unclaimed PAR recovered by the DAO over the period.
Technical Implementation:
- Monthly (buyback): Execute $20,000 USDC → PRL buybacks via CowSwap TWAP orders; burn the purchased PRL immediately upon settlement.
- On sPRL1 slashing events: Burn all PRL received from sPRL1 slashing directly from the protocol contract.
- Monthly (PAR recovery): Identify PAR distributions older than 12 months, recover them to the DAO Treasury, swap to PRL via CowSwap TWAP orders, and burn the purchased PRL.
Voting Options:
- For the PRL Burn Phase II
- Against / Rework the Proposal
- Abstain
Author(s): Cooper Labs
Community poll:
- For the PRL Burn Phase II
- Against / Rework the Proposal
- Abstain