Secret Network Proposes Major Token Dilution to 20% of Current Supply on July 28

According to former Secret Network Foundation head Lisa Loud, the Secret Network community is proposing a one-time token issuance to restructure the network's tokenomics following Secret Labs' exit. The proposal aims to dilute existing token supply to 20% of its current level while maintaining the chain and preserving all existing holders.

New tokens would be distributed to a new managing entity, validators, cross-chain relayers, developers, and victims of a previous bridge hack. The plan integrates all staked SCRT held in contracts like Shade into the continued chain and converts previous victim compensation from a future possibility into a fixed allocation within the new token distribution. Proposed protocol-level fees would fund ongoing development and infrastructure.