Did I See That Right? Is $WAN Coin Deflationary?

Published in

Wanchain

4 min readJun 26, 2024

The Answer Will Surprise You.

Excitement over our upcoming Convert ‘n Burn System is growing every day. It will bring seven major benefits that will further unify the Wanchain Bridge, Wanchain L1 Blockchain and $WAN coin. Much like a spark igniting a wildfire, these elements will converge to unleash a powerful force.

The benefit that has undoubtedly most inspired the Wanchain community is the new burn mechanism. Several hawk-eyes community members even noticed that the total supply of $WAN coin seemed to be decreasing!

This poses the question, has the $WAN coin become deflationary? .

3..2..1..

Wanchain, as an R&D focused interoperability project, takes a very methodical approach to development. We design, seek feedback, adjust and test. Our approach when designing the Convert n’ Burn System was no different. For example, we tested many different fee models on various bridge routes over the past several months.

As a direct result of these tests, the bridge collected coins and tokens on multiple blockchains. The decision has been made to convert 100% of these tokens and coins into $WAN, which will then be distributed and burned according to the Convert ‘n Burn System. This provides a glimpse into how our unified future will look!

A Quick Reminder

The Convert n’ Burn System binds Wanchain’s industry-leading cross-chain infrastructure with the Wanchain L1 blockchain. At the same time, it lays the foundation for greater community ownership. It further unifies the entire Wanchain ecosystem by converting the fees collected by the Wanchain Bridge to WAN coins and redistributing them like this:

40% to a community treasury for management by the Wanchain community*
30% to the ongoing operations of the Wanchain Bridge**
10% to incentivise Wanchain Bridge Nodes and delegators
10% to incentivise Wanchain PoS Nodes and delegators
10% to be burned

* Details on community treasury management, including voting mechanism, will be shared at a future date. In the future, the Wanchain community will also be able to vote to change how the collected fees are allocated.

** The fees collected to fund the ongoing operations of the Wanchain Bridge will be held as network coins and stablecoins to cover gas fees on various networks.

Is $WAN Deflationary?

Now, back to the elephant in the room. Is $WAN really deflationary?

Sort of.

At least, the total supply did decrease. As part of our pre-launch testing, a portion of the collected fees was converted to $WAN and redistributed using Convert n’ Burn. As expected, 10% of these fees were burned. These burned WAN outnumbered the WAN emissions to PoS Validator Nodes for the first time in Wanchain’s history! So, for a moment, $WAN was indeed deflationary.

Once the Convert n’ Burn System is officially launched, every single member of the Wanchain community will directly benefit from the success of the Wanchain Bridge. As cross-chain volume increases, more fees are collected, which means more fees get converted to $WAN and more $WAN is burned. The Convert n’ Burn Systems has the power to make $WAN deflationary into the future!

The Unification Era

This burn mechanism is just one of seven benefits that Convert n’ Burn System introduces. All these benefits help to establish a sustainable mechanism to drive the long-term development of the Wanchain Bridge while directly creating value for the entire Wanchain ecosystem. With the Convert n’ Burn System, Wanchain’s Unification Era has well and truly arrived.

About Wanchain

We are all connected — Wanchain, the Wide Area Network chain, is the world’s premier decentralised blockchain interoperability solution. Our mission is to drive blockchain adoption through interoperability by building fully decentralised bridges that connect the world’s many siloed blockchain networks. This cross-chain infrastructure empowers developers to build truly decentralised cross-chain applications to power the future of Web3.