Clarification on WING Token’s Supply Metrics and Distribution
Introduction
The Wing DAO operates under a governance model that requires all decisions regarding the product and tokenomics to strictly adhere to community voting outcomes. This article clarifies the changes to WING token’s economics, specifically addressing the adjustments brought about by governance proposals WIP-04 and WIP-08.
Original Tokenomics of the WING Token
The WING token was initially introduced with a max supply cap of 10 million tokens, intended as the absolute limit under the protocol. This original setup was designed to ensure a finite supply, encouraging value preservation and scarcity:
Max Supply: Initially set at 10 million tokens, the max supply was intended as the absolute limit of tokens that would ever be created, which was implemented in the smart contract and couldn’t be changed.
Total Supply: Corresponded to the number of tokens that had been minted at any given time, minus any tokens that had been burned.
Circulating Supply: Included tokens that were actively available for trading and excluded tokens reserved for future use or locked for various reasons such as staking, team allocations, or promotional activities.
Governance and the Role of Wing DAO
Wing DAO embodies the decentralized governance ethos, where all significant changes to the platform or its tokenomics are made through community proposals and voting. This democratic approach ensures that every stakeholder has a voice in the project’s direction.
Adjustments via WIP-04 and WIP-08
Following community feedback and voting results from WIP-04 and WIP-08, significant adjustments were made to the WING token’s total supply:
Reduction to Final Total Supply: The community voted to reduce the final total supply from 10 million to 5 million WING tokens. This decision was implemented through a combination of token burning and adjustments to the token distribution rates.
Implementation Details:
Burning of 1 Million Tokens: Immediately following the approval of WIP-04, 1 million WING tokens were burned to kickstart the reduction process.
Adjustment of Distribution Rates: Concurrently, the distribution rate was adjusted to slow down the rate of new token issuance, ensuring that the total supply will gradually decrease to the new cap of 5 million tokens.
Diminishing Total Supply: The process of reducing the total supply is ongoing and managed through a systematic burning mechanism that carefully diminishes the number of tokens over time until the 5 million cap is reached.
Monitoring and Correcting Third-Party Data
There have been discrepancies in how third-party platforms, such as CoinMarketCap and Binance, display data related to WING’s circulating and total supply. While these figures are now correct, the Wing team will keep monitoring to ensure accuracy across all platforms. We urge community members to report any discrepancies they observe to ensure that all publicly available information remains accurate and transparent.
Conclusion
The dynamic adjustments to the WING token’s economics demonstrate Wing DAO’s commitment to adapting its strategies based on stakeholder input and market conditions. These changes, particularly those implemented following WIP-04 and WIP-08, underscore the community’s influence over the project’s direction and its dedication to maintaining a sustainable and valuable token ecosystem.
