Should Polkadot 2.0 destroy Coretime revenue?

After Polkadot is upgraded to 2.0, how should the income from selling Coretime be handled? Should it be destroyed directly, transferred to the national treasury, or used for other purposes?

Recently, Jonas, a member of the Web3 Foundation, recently published a post suggesting that Coretime sales revenue be destroyed instead of being put into the treasury, and listed some reasons for supporting the destruction.

In this article, PolkaWorld organizes the content of the post. Original post:

Advantages of burning Coretime income

1. Avoid the impact of Coretime income fluctuations on the treasury

It is very important for Polkadot to have a consistent and predictable treasury revenue, as fluctuations in treasury revenue can have a negative impact, especially if revenue is insufficient. Therefore, revenue from volatile Coretime sales should not be tied to the treasury.

Also, Coretime income is generally inversely correlated with when the treasury should spend more. That is to say, during the period when the utilization rate of Coretime is low (the price is low), the treasury actually needs to invest more in projects and plans to stimulate the demand for Coretime.

2. Clear incentives

Burning Coretime sales revenue means that the tokens paid by the purchaser are a clear cost. This removes possible distortions in the market, as payments occurring elsewhere within the network could affect the Coretime sale price.

In this case, some of the actors involved in the sale of Coretime may have other incentives to influence the price of the sale of Coretime, since they would benefit from the treasury. For example, if the treasury balance is high, teams that frequently apply for treasury funds may benefit more. Burning revenue ensures that the price buyers pay is their own cost.

3. Collective value accumulation

Burning Coretime sales proceeds also has some indirect benefits, as it reduces the total amount of DOTs, thereby increasing the value of the remaining tokens.

Unlike the previous two points, this benefit benefits all token holders, as burning enables all token holders to share in Polkadot's success, especially as Coretime usage increases.

Other perspectives from the community

Several Polkadot community members have also actively discussed this issue.

1. It should be destroyed, but the time has not yet come

According to community member jakubgregus, the timing of burning Coretime revenue is very important.

**It should be destroyed when the treasury and Polkadot can be fully self-sufficient (no longer dependent on inflation) and a proper treasury management mechanism has been established. **It's like Amazon not paying a dividend for many years in the early days and instead investing all of its income into growth. In addition, Coretime's pricing rules have not yet come out.

Therefore, the proceeds should be saved at present, and the destruction should not be considered until the treasury and the entire ecology are more formed.

2. Coretime should use stable currency to pay

Community member amenlo9 advocated that the pricing of Coretime should be based on stable currency (such as USDT) instead of DOT, so as to prevent the fluctuation of DOT price from affecting the demand and price of Coretime.

For example, the price of Coretime every 4 weeks is 100 USDT, the application chain consumes Coretime (destroys DOT), and the treasury receives 100 USDT income at the same time.

Future treasury proposals should be paid with USDT within the treasury, thereby preventing treasury requesters from dumping DOT on the open market.

3. It should be destroyed, otherwise DOT will be used repeatedly

Community member Vcryptor believes that every DOT used to purchase Coretime should be destroyed, otherwise leverage will be created.

Because any DOT purchased on the market for payment Coretime is used by the treasury for capital expenditure, and then will eventually be sold on the market, and then used by other teams for *payment *Another Coretime, looping continuously.

If the Coretime sales revenue is not destroyed, each DOT will be used millions of times, resulting in the depreciation of DOT.

Do you think Coretime revenue should be destroyed?