Over the past few months, a lot of public discussions have been had regarding the tokens being held in the STFX treasury, with the Community Incentives and DAO Treasury holding, pre-burn, 500,000,000 tokens.
A proposal was initially discussed and presented by 0x7, an avid follower and contributor to the project, which was posted, and can be viewed here:
After the proposal was met with overwhelming support from the community, it was pushed to an official DAO vote, which passed with over 90% of the votes in favor of the burns.
The burn was broken down into 3 individual burns, with volume metrics needing to be met for each burn to take place, as follows:
- Burn 50m tokens from the community incentives fund immediately to celebrate a $40m cumulative trading volume.
- Burn 50m tokens from the DAO treasury fund when STFX cumulative trading volume reaches $250m.
- Burn 50m tokens from the community incentives fund when STFX cumulative trading volume reaches $1B.
The first of which had already been met following the passing of the proposal, meaning the first burn was immediately executed, which meant 50,000,000 STFX tokens (5% of Total $STFX Supply) were sent to a burn address, permanently removing them from circulation.
Once the STFX platform has reached both $250m, and $1b cumulative trading volume, a further 2 burns of 50,000,000 tokens will follow. Cumulative trading volume can be tracked using the STFX Stats page, which updates weekly.
Why burns? This question could be answered with a lot of different reasons. Lowering the FDV of the token, as well as removing some tokens is a great way to remove any perceived future sell pressure, as well as making the upside of a project and its token higher on a price-per-token basis. Lowering the supply increases every token holder’s total percentage of stock in the project, in this case 15% higher once all of the burns have been completed.
As the project matures, we also have plans on implementing many more burn features, such as burn-2-access features for the dApp, as well as the potential idea to redirect any platform fees into further buyback & burn elements. As always, we will leave much of this to the community, and governance system for the DAO.
Feedback is always appreciated at STFX. Feel free to join our community Discord for any inquiries you may have, or to share any feedback for improvements or changes you would like to see.
