# \[CVV005\] Proposal: Enable Burning Mechanism

**URL:** <https://forum.casper.network/t/cvv005-proposal-enable-burning-mechanism/1538>\
**Category:** Proposal Discussion\
**Tags:** proposal, pre-voting, governance\
**Created:** [September 17, 2025, 7:28pm UTC](https://forum.casper.network/t/cvv005-proposal-enable-burning-mechanism/1538 "2025-09-17T19:28:18Z")\
**Posts on this page:** 1\
**Page:** 1

<div class="post-metadata">

**Author:** ![kara](https://avatars.discourse-cdn.com/v4/letter/k/e480ec/32.png) [@kara](https://forum.casper.network/u/kara)\
**Post date:** [September 17, 2025, 7:28pm UTC](https://forum.casper.network/t/cvv005-proposal-enable-burning-mechanism/1538/1 "2025-09-17T19:28:18Z")

</div>

**Proposal to Enable 100% Transaction Fee Burning on Casper Network**

## Executive Summary

This proposal recommends implementing permanent burning of all transaction fees on Casper Network.

## Key benefits:

- Creates deflationary pressure on CSPR supply
- Increases token scarcity over time
- Maintains validator earnings through block rewards
- Aligns with successful models like Ethereum and BNB Chain

## Technical Implementation

### Core Changes:

Immediate Changes:

- Modify chainspec to burn 100% of transaction fees:
- Current setting: `fee_handling = { type = 'pay_to_proposer' }`
- Proposed setting: `fee_handling = { type = 'burn' }`

Future Changes:

- Implement a feature which allows partial burns where certain percentage of the tx fee is burned and the rest is sent to a designated account. Both the percentage and the designated account values will be chainspec parameters.

### Monitoring:

- Add burn tracking
- Track burned fees in block headers
- Display in network explorers  
(Implementation details are up to the development team’s best judgement as long as the desired goal of being able to monitor the burned amounts is achieved.)

## Economic Impact

- Same total earnings (via block/signature rewards)
- Potential CSPR value appreciation benefits all

## Deployment of the 100% Burn:

- Devnet: Practically immediately post-approval
- Testnet: In 1 week post-approval
- Mainnet: In 2 weeks after Testnet deployment
- Monitoring: In 6 months post-approval

## Implementation of the Partial Burn Feature:

- Scheduled to be released in Casper v2.2

## Risk Mitigation

| Risk | Solution |
| --- | --- |
| Validator concerns | Show equivalent earnings |
| Spam attacks | Keep minimum fees |
| Volatility | Gradual implementation |
| Explorer issues | Pre-launch coordination |

## Ecosystem Benefits

- Token value growth
- Simplified economics
- Competitive advantage for:
  - DeFi applications
  - Financial dApps
  - Long-term holders

- Sustainability of the chain is supported with a revenue stream for future developments through partial burns.

## Conclusion

- Fee burning creates sustainable tokenomics by:
  - Reducing supply permanently
  - Maintaining validator incentives
  - Following proven industry models

## Proposal Lifecycle

- **Stage** : Pre-voting
- **Voting Options**
  - **For** : Support the proposal.
    - 011de3a86cd71d98a83bddf57384e1a0c3b4ea5be696fcbd6fa9a80b3cdcf396de

  - **Against** : Oppose the proposal.
    - 0118c145c88386f6cf0dd12c30702742013ab23260253e8748f620dd31c27ccadb

  - **Abstain** : No opinion.
    - 015dc16c2072eaf747f559385ee0ac277fbf91ab87b536da8c5bb6177940e833ac

- **Voting Starts** : ~20:19 UTC, September 17, 2025 (at block height 5500490)
- **Voting Ends** : ~20:19 UTC, September 20, 2025 (at block height 5516690)

* * *

**How to vote:**

- A voting token, with a total supply of 100.00, for the proposal will be created, and distributed to Mainnet validators based on their network weights as of era 19499.
- Voting token contract: [CSPR.live](https://cspr.live/contract-package/bab80b560cd420bd66b578c3967f3508455e2e752e475ce405d796ad4af774d3)
- Make your decision and send all (recommended) voting tokens to one of the corresponding addresses below.
  - For: 011de3a86cd71d98a83bddf57384e1a0c3b4ea5be696fcbd6fa9a80b3cdcf396de
  - Against: 0118c145c88386f6cf0dd12c30702742013ab23260253e8748f620dd31c27ccadb
  - Abstain: 015dc16c2072eaf747f559385ee0ac277fbf91ab87b536da8c5bb6177940e833ac

* * *

**Evaluation of the results:**

- Quorum ratio: +50% network weight (\>50.00 tokens, including the abstains)
- Decision threshold: Simple majority (+50% of participating weight, excluding the abstains)
- Example:
  - For:35.00, Against: 25.00, Abstain: 15.00
  - Quorum reached with 75.00%, proposal accepted with ~58.33%

* * *

- The feedback collection & discussion topic: [Proposal: Enable Burning Mechanism](https://forum.casper.network/t/proposal-enable-burning-mechanism/1486)
- The final proposal topic: [[CVV005] Proposal: Enable Burning Mechanism](https://forum.casper.network/t/cvv005-proposal-enable-burning-mechanism/1538)
- Proposal on IPFS for reference: [https://manual-cyan-locust.myfilebase.com/ipfs/QmSvjs1SMtXMn7GpP9uKfEa3gCx6yAnQHFLVPaGsiYb41f](https://manual-cyan-locust.myfilebase.com/ipfs/QmSvjs1SMtXMn7GpP9uKfEa3gCx6yAnQHFLVPaGsiYb41f)