Secret Network Community Proposes Large-Scale Token Issuance to Dilute Old Holders

July 28th, according to the Secret Network community forum, former SNF lead Lisa Loud has released a draft proposal suggesting a new entity led by her take over Secret L1 after Secret Labs withdraws, and to restructure the token economics through a one-time large issuance. The plan proposes to allocate newly minted tokens to the new entity, validators, cross-chain relayers, developers, and bridge hack victims through a "dilutive issuance" (example: old supply diluted to 20%), without migrating the chain or removing any token holders. Protocol-level taxes will be set to continuously fund development and infrastructure. The proposal emphasizes fully incorporating SCRT staked in contracts like Shade into the continuation chain, and changing hacker victim compensation from "possible in the future" to a clearly reserved amount in token allocation. However, it also warns of multiple risks, including concentrated voting power, difficulty for the community to accept high dilution, and delisting by exchanges.