Sep 19, 2020
67.5%, 6M+ CREAM Token Burn Tomorrow
Tomorrow, September 20th, C.R.E.A.M. will move ahead with burning of 6,075,000 CREAM tokens, or 67.5% of the current supply.
This burn will include 100% of the “governance” tokens, and 75% of the Seed tokens. We believe that this action will provide greater certainty to the current token holders while creating a stronger foundation for long-term success of the project.
Why Burn?
There has been much back and forth within our community regarding a possible CREAM token burn in order to reduce future uncertainty and remove the overhang of a large portion of tokens not in circulation. We’ve heard opinions from many different community members, and appreciate everyone’s time and effort putting together very thoughtful proposals.
Burn you, burn me, burn for accelerated vesting?
While we all agree that a CREAM burn would be good for our community, issues around how much and from which allocation to burn were the most contentious. Some proposals were deemed overly opportunistic and favorable to the current Cream holders over long-term growth, while others seemed not drastic enough to make a large difference or cut into the Seed/Team/Advisor allocation. The most reasonable tradeoff suggested was between accelerated vesting in exchange for token burns. We discussed these issues at length with key members of the community, and concluded on the below burn:
“Governance” burns 100%; Seed burns 75%, receive accelerated vesting; Team in for the Long Haul
Governance does not necessarily need to govern token treasury. Yearn Finance’s governance does not, and that is the norm so far. Even by burning all of the Governance allocation, C.R.E.A.M. still has plenty of collected fees and tokens in the treasury.
Thanks to our seed investors and their continued support and sacrifices for the project, they have agreed to a 75% burn in exchange for accelerated vesting of 1-year, monthly vesting. Specifically, seed tokens will now vest monthly starting September 24th. The same burn and accelerated vesting option was also provided to the Team, but every team member declined this option as the team believes in what C.R.E.A.M. is building, with a long-term view on the project. Given that Team and Advisor tokens do not vest until February 8th, neither of these groups will have votes outside of what they may have liquidity mined until then.
Liquidity Mining -> Treasury
We have renamed the remaining balance of the Liquidity Mining allocation to simply Treasury, which will serve to further provide incentives for two upcoming products in the pipeline and provide funding for future projects.
Onward!
With this burn, we look forward to concluding these discussions and getting back to building our products and the governance platform. Thank you to everyone in the community for voicing your opinions. Though we don’t always agree, dissenting opinions need to be heard and only make us all better.
C.R.E.A.M. DAO
Crypto Rules Everything Around Me, C.R.E.A.M.
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