LIEN Buyback Program & Change in Token Distribution
Lien Token Buyback Announcement
Lien Protocol will be buying back Lien Tokens using fees that the Devs have received from the Lien Protocol through its token holdings. There will also be an adjustment to the overall token distribution.
The Size of the LIEN Buyback
Lien Protocol has received 155.755 ETH (currently $260,000) as fees since its inception which has been distributed to LIEN holders.
The Devs currently own close to 50% of the existing LIEN tokens, resulting in 77.8775 ETH being paid out to the Devs.
After considering multiple factors including, but not limited to, growth of the DeFi space, positioning of Lien within that environment, expansion of DeFi into different blockchain protocols beyond Ethereum, we have decided to buyback and burn 77.8775 ETH ($130,000USD) worth of LIEN.
The buyback will occur from time to time, depending on the fees received, market environment, among other things.
Why Buyback and burn
Lien Protocol currently distributes ETH collected as fees directly to LIEN token holders every 28 days.
It costs 200,000 Gas (Currently $70) for users to claim these distributions, which corners out users that only hold a few LIEN.
When we first developed this function, the gas fees were much lower and was feasible under the circumstances at that time.
To adapt to the current environment which has changed significantly since project inception, we have decided to update the token economics of LIEN.
The buyback and burning of circulating LIEN from the market using our Dev holdings is part of the overall effort to adjust the token economics.
Token Distribution Update
We have further updates to the token economics.
The LIEN tokens were distributed as follows upon launch:
To increase the liquidity of LIEN tokens and improve the trading experience of LIEN holders, we will update the token allocation as follows:
Dev: 50% → 38%
Community Funds: 38% → 50%
Allocation of Dev tokens to Community Funds will increase the capacity of the Liquidity Providing Program that we plan to launch when LIEN Protocol V2 is released.
With Lien Protocol V2, users will be able to participate in the liquidity pool and become option sellers.
In Lien Protocol V2, users will play a key role as liquidity providers of derivative products and earn premiums by generating and selling options.
Details will be announced soon!
What’s next
Last but not least, let us mention a little about ongoing developments.
We are currently developing the frontend of Lien Protocol V2 as well as putting the finishing touches on theLayer 2 (Rollup) whitepaper.
The Layer 2 alpha version will be in your hands very soon.
Lots to come in 2021.
Stay tuned!
