InterLink's Proposal 14 Suggests Major Change to ITLG Token Burns

InterLink has launched DAO Proposal 14, which seeks to implement a recovery mechanism for burned ITLG tokens. The initiative aims to balance the network's existing burning system with opportunities for users who demonstrate ongoing commitment. 

This development arrives as InterLink recently unveiled its new era plans for 2026, outlining a roadmap that includes a private mainnet launch, expanded ITLG utilities, and institutional integrations to support broader adoption.

The proposal maintains the core burning mechanism, which has served as a key tool for economic stability and security within the network. However, it addresses a growing concern: whether long-term contributors deserve a pathway back after periods of inactivity. By layering in recovery options, the system encourages sustained participation without undermining the discipline required for network integrity.

What is the Rationale Behind the Recovery System?

Proposal 14 emphasizes that short-term lapses should not permanently negate years of user involvement. Recovery is structured around commitment, allowing users to reclaim burned ITLG only through consistent activity. This approach preserves high standards, as regained tokens depend on effort rather than automatic reinstatement.

Without such a feature, the network could gradually become less accessible, potentially limiting its scalability. The recovery mechanism promotes inclusivity, aligning with InterLink's goal of reaching one billion human nodes. It also fosters a more balanced token distribution by rewarding behavior over time, which helps avoid concentration while safeguarding scarcity. Importantly, this addition does not inflate supply or alter the fundamental burning rules; it builds on future contributions to enhance resilience.

Users who have built referral networks stand to benefit as well, since the system ties referral rewards to actual recovery progress. If a downline account faces full burning, upstream rewards pause until the affected user restores their tokens through streaks. This ensures fairness across the entire referral structure, reinforcing accountability at every level.

What are the Mechanics of ITLG Recovery?

The recovery process operates on a streak-based model. For each set of four consecutive mining sessions, a user unlocks one step, restoring the earliest burned cycle. Longer streaks enable further progress: eight sessions for the next cycle, twelve for the one after, and so on, until full recovery. This progressive structure rewards persistence and integrates seamlessly with daily routines.

Referral recovery mirrors this emphasis on genuine effort. When a lower-tier account (such as F2) completes its streak-based restoration, proportional rewards return to upstream participants (F1 and F0). The system prevents shortcuts, ensuring that all recoveries stem from verifiable activity.

Regular mining remains unaffected throughout. Users can pursue recovery alongside their standard sessions, with no overlap or substitution. This parallel operation keeps the core experience intact while providing a safety net for dedicated participants. 

To implement this, users would need to maintain mining consistency post-inactivity. For example, someone with multiple burned cycles might start with four sessions to reclaim the first, then build from there. This method not only revives past efforts but also motivates ongoing engagement, potentially stabilizing user retention as the network expands.

What Does it Mean for Network Participants?

By introducing earned recovery, the proposal supports long-term growth without compromising security. It positions the network as more forgiving for real-world interruptions, such as travel or personal commitments, while still demanding proof of dedication. This could lead to higher overall activity levels, as users weigh the value of streaks against potential losses.

The mechanism also aligns with InterLink's focus on human-centered design. In a system built around verified nodes, recovery ensures that contributions accumulate meaningfully over time. As the platform targets everyday applications—like payments and bookings—these economic tweaks help sustain user trust and participation.

Community feedback will determine the proposal's fate, reflecting InterLink's governance model. If approved, it could set a precedent for future adjustments, adapting to user needs as adoption scales.

Reflecting on Recent Developments

This latest proposal follows closely on Proposal 13, which passed in late 2025 and introduced a 50% halving of the ITLG base rate. That change aimed to enhance scarcity by reducing new token emissions per mining session, controlling inflation at a time when the network had exceeded five million users. 

It preserved proportional fairness across all participants, slowing supply growth to match maturing demand. Together, these initiatives underscore InterLink's commitment to sustainable tokenomics, preparing the ecosystem for expanded roles in global transactions and beyond.

Sources:

• _{InterLink on X: DAO Proposal 14 Announcement (January 2026).}
• _{InterLink Labs Website: InterLink DAO and Governance Information.}