OIP-10: Season 1 of Tokenomics - Token Burn

With OIP-9 approved and the Orbs DAO now up and running, it's time to bring the DAO its first tokenomics proposal.

OIP-10 is a first step towards updating Orbs tokenomics for this new stage. It proposes a burn of ORBS tokens currently held in the Long-Term Reserves Pool. You can read the full proposal here.

What OIP-10 proposes

OIP-10 proposes setting aside a seasonal pool of 507,540,603 ORBS tokens, worth approximately $3.5M (at a price calculated based on the 30-day TWAP as of November 2, 2026), in a smart contract.

The contract would burn these tokens in weekly batches, with each week's amount based on the market price at the time, until the full seasonal pool has been burned.

The number of tokens in the pool is fixed. Their market value will change over the course of Season 1.

What it means for the ecosystem

If approved, the burn would reduce the total supply of ORBS tokens and the unused tokens held in the Long-Term Reserves Pool, providing greater clarity on the reserve tokens available for future use.

Using a publicly defined calculation provides a transparent and verifiable process. Community members would be able to track the progress of the burn and the remaining seasonal pool through on-chain transactions and regular updates.

As the first tokenomics proposal brought to the Orbs DAO, this proposal would give the community a concrete role in determining the use of project reserves and the development of Orbs tokenomics. Its defined scope would allow the community to evaluate this initiative on its own terms, while leaving future tokenomics decisions open to future discussions.

As the initial tokenomics season, it will also help the community decide whether to use token burns going forward.

Separately, Orbs core contributors are exploring potential updates that could support more decentralized tokenomics in the future, such as the possibility of paying fees in ORBS tokens and introducing periodic community governance over how those fees are used.

How the weekly burn works

If OIP-10 is approved, the Orbs core contributors will develop and deploy a smart contract for Season 1.

Each week, the contract will divide $67,307.69 by the 7-day TWAP of the ORBS price (in USD) for the preceding period, and send that number of ORBS tokens to an irretrievable burn address.

The weekly reference amount of $67,307.69 is $3.5M divided by 52 weeks. It sets an indicative weekly pace.

For example, at a 7-day TWAP of $0.0065, the pool would burn approximately 10,355,029 ORBS that week. If the price stayed at that level throughout the season, the pool would be depleted in about 52 weeks. If a calculated weekly burn exceeds the remaining balance, only the remaining balance is burned, completing Season 1.

The TWAP used, the number of tokens burned and the burn transaction will be published on the day of each burn. The price source and detailed TWAP methodology will be published before the smart contract is funded.

Orbs Ltd. will deploy the smart contract and deliver the 507,540,603 ORBS tokens to it from the Long-Term Reserves Pool. The Orbs core contributors will monitor the contract and share the results with the community.

Risks

The proposal also involves some risks.

The burn may not have a positive impact on the ecosystem. Many factors determine the value of ORBS tokens, and there is no guarantee the burn will have the desired effect.

A significant portion of the long-term reserves will be used, which may create opportunity costs if the burn does not produce the desired effect.

Because each weekly burn depends on a volatile market price, it is not possible to predict in advance how long Season 1 will last.

OIP-10 does not commit the Orbs team or any other participant in the Orbs ecosystem to any future action beyond what it states, including future token burns, revenue distribution or other tokenomics measures.

Voting

OIP-10 will be open for discussion for six days, after which it will move to a Snapshot vote.

The vote will follow the standard rules of the Orbs Snapshot space.

The full proposal is available here. We look forward to the discussion.