I just want to go on record here and say that burning the tokens is an absolute non-starter as it would only consolidate voting power in the hands of whomever has it currently. For individuals and public bakeries, this is good, but you also consolidate voting power for exchanges as well. There needs to be a balance.
I also want to voice my opposition against any proposal that intends to remove the Tezos Foundation’s XTZ as it is a fundamental violation of property rights.
That said, a specific amount of XTZ was awarded to TF upon protocol genesis. I think that any growth above that inflation adjusted number (and I think the community accepting the inflation growth is a generous position) goes against what many individuals expected. I have no personal issues with DLS vesting XTZ staking.
Instead I would suggest that any XTZ over 5% annual is ear-marked for distribution to grant-applicants as additional payment. For instance, say a grantee is awarded $50,000 USD for a project. Pair it with a $50,000 equivalent in XTZ that the Tezos Foundation received because of the staking differential (not 100% is staking, so stakers grow their holdings versus the entire supply.)
There can be a stipulation that 50% of this XTZ is used for public or private baking over a pre-determined time span, adding resiliency to the network. Once that time-span passes, the individual can do as they please. But I would imagine they would hold, and continue to bake, otherwise why would they be building on Tezos in the first place?
What I would much rather see is TF supporting an on-chain DAO that is well capitalized and in community control. I’m going to cross-post a reply I made in a related thread below.
I do believe that TF baking is a net-good, but the growth of their XTZ holdings is worrisome, and I think course correction is necessary. Tezos as a network becomes stronger if more individuals hold XTZ.
