Setup a tiered discount mechanism on wallets which hold gZil for all transactions. This discount will not go to the user but instead automatically be used to buy gZIL to burn.
When users with as little as 5 - 25 gZil conduct any transaction on the ZIL blockchain, they receive a tiered discount that does not go to them, instead is automatically used to buy gZil from the open market to burn. This discount can range from 5% to 25%.
Ways to sustainably and incrementally decrease the supply of gZIL while increasing incentive for people to hold gZIL.
Some months ago, the fees for transactions on the Zilliqa network were increased in order to reduce the number of spam transactions, which would in a sense clog up the blockchain with useless transactions. This means that there should be scope for a slight reduction in the newly increased transaction fees. What this proposal suggests is a targeted approach to reducing transaction fees, for the greater good of the governance token, gZil.
By tying this reduction to gZil holders, we reward people for holding gZil, which can in turn raise awareness of gZil as well as increase the motivation to hold gZil. The potential end result is more engaged users, with a stake in governance as well as allowing gZil to have higher values to compare favourably with governance tokens from other blockchains, enhancing its competitive edge.
Wallets that have at least 5 gZil will receive a 5% discount on transaction fees, in a tiered mechanism going up to wallets with at least 25 gZil receiving a maximum 25% discount on transaction fees. 5 tiers are envisioned.
5 gZil - 5% discount
10 gZil - 10% discount
15 gZil - 15% discount
20 gZil - 20% discount
25 gZil - 25% discount
This discount does not go to the user, but instead is automatically set up to buy back gZIL from the open market and then burned in order to decrease the supply of gZil on an ongoing basis.
Please raise any potential obstacles from either a tokenomics, feasibility or implementation point of view in the comments below.