Update to $CYBRO Token Utility Model

Proposals
1

Summary

This proposal introduces a key change to the CYBRO tokenomics model.

The community is invited to decide whether users should BURN or LOCK their $CYBRO tokens in order to receive platform fee discounts on CYBRO Pro.

The proposed change aims to replace the current staking-based model with a more sustainable and value-accretive mechanism.

Background

The $CYBRO token currently serves several purposes within the ecosystem:

  • Lower Fees - discounted platform fees based on staked $CYBRO

  • Protocol Governance - participation in CYBRO DAO decision-making

  • Priority Access - early or exclusive access to specific platform features

  • Enhanced Yields - improved returns on select Vaults

At present, fee reductions on the platform depend on the amount of staked $CYBRO.

However, this staking model introduces an issue:

when tokens are unstaked, they re-enter the market, increasing circulating supply and potentially pushing the price down.

After discussions within the team and with external market professionals, we propose to replace staking with one of two alternative mechanisms - Lock or Burn - to better align incentives and maintain token scarcity.

Proposed Models

:fire: Option 1: Burn Model

Users burn (permanently destroy) $CYBRO tokens to obtain fee discounts or benefits on CYBRO Pro.

Pros:

  • Deflationary — permanently reduces total supply

  • Creates long-term value for holders, with stronger buying pressure expected after the first 12 months

  • Flexible for users — they only need to burn the amount required for the desired discount

Cons:

  • May generate lower buying pressure in the first months compared to the lock model

  • Provides less user retention than the lock model

:locked: Option 2: Lock Model

Users lock $CYBRO tokens in a smart contract for a defined period (e.g., 1 year) to receive platform discounts or benefits.

Pros:

  • Generates higher buying pressure in the first months compared to burning

  • Encourages long-term commitment to the platform

Cons:

  • Does not reduce total supply (less deflationary)

  • Locked tokens eventually return to circulation, creating selling pressure over time

  • Users may obtain discounts greater than the value of the locked tokens

  • Some users may avoid long locks, being unsure about their long-term use of the platform or the fee impact

:chart_increasing: Token Price Impact Comparison

Our modeling shows that the $CYBRO price grows slightly faster during the first few months under the Lock Model.

However, in the long term, the Burn Model proves to be more effective, as it eliminates the selling pressure from unlocked tokens returning to the market.

Comparison:

  1. After 12 months:

    • Burn Model: $0.008
    • Lock Model: $0.012

  2. After 24 months:

    • Burn Model: $0.101
    • Lock Model: $0.022

These figures are based on the team’s internal business modeling, which draws on market research, competitor data, user interviews, behavioral analysis, and current funnel metrics.

The projections are balanced - neither overly optimistic nor overly conservative - but actual results may differ depending on market conditions and user adoption.

Rationale

Transitioning from staking to either locking or burning is designed to:

  • Reduce selling pressure on $CYBRO

  • Strengthen the token’s economic foundation

  • Align platform benefits with long-term user engagement

Voting Options

CYBRO DAO members are invited to vote on the following options:

  1. :fire: Adopt the Burn Model — users burn $CYBRO to gain platform discounts

  2. :locked: Adopt the Lock Model — users lock $CYBRO to gain platform discounts

  3. :balance_scale: No preference — delegate the final decision to the CYBRO Core Team

Next Steps

After the DAO vote concludes, the selected model will be integrated into the Cybro App and reflected in updated documentation and smart contracts.

2

Please vote here.