$WOMBAT Burn 2.0 is here!
Hey Wombat Family,
It’s been over a month since our first successful $WOMBAT token burn. Back then, we burned over 9 million $WOMBAT. But this was just step one. Today, we are happy to announce our 5-part burning program that aims at halving our token supply!
The goal
The overall goal is sustaining and adding value for the $WOMBAT holders on a strong deflationary trajectory. Alongside more use cases within our ecosystem, the burning program inspires direct ways for you, our community, to impact the token supply with your everyday actions, be it working with the blockchain or inviting friends to discover awesome games via Wombat.
We expect to burn at least 5 billion tokens over time. That means, as the Wombatverse grows, the early adopters will get at least double the value for their $WOMBAT holdings. It might even go beyond that amount, depending on the overall market and adoption of Web3 in gaming.
Burn mechanisms
For the burning program, we wanted to introduce a whole package of measures that touch on different aspects of our ecosystem but also work together quite nicely. Hence, the program setup is as follows.
Liquidity Burn
We’re constantly burning tokens that accrue in our Uniswap v3 liquidity pool as trading fees. Thus, the more the token gets traded, the more tokens we’ll be burning
Purchase Burn
Last week we introduced payments within our ecosystem using $WOMBAT — that includes the clan expansion minting fee of 1500 $WOMBAT each and the payments for drops and blends on Neftyblocks (both using the WAX-based $WOMBAT). Long-term, we’ll be burning 20% of those payments, but for the next 6 months, we’ll be burning 100% of them every month!
Adoption Burn
A huge part of that program is the newly designed Adoption Burn! Starting from November 2022, through the Adoption Burn, we plan to burn 500m (!) $WOMBAT within the next few months based upon the adoption of Wombat and its ecosystem.
This includes burned $WOMBAT based on:
- Downloads of the Wombat app (25 $WOMBAT burned per download)
- Secondary NFT trades of Wombat-issued NFTs (20 $WOMBAT burned per 1 USD of trading volume, including Womplay & Dungeon Master NFTs)
- Every “Top game” download within Wombat (100 $WOMBAT per such download)
- Users who sign blockchain transactions with Wombat(10 $WOMBAT burned for each daily user signing a blockchain transaction with Wombat)
We’re introducing the Adoption Burn for all $WOMBAT holders to be motivated to join the Wombat Web 3 Gaming Platform (including Dungeon Master) and spread the word about us and the $WOMBAT token!
Monthly Burn
Starting this month, we’ll be performing monthly token burns for all three of the mechanisms mentioned above. We’ll calculate all of the amounts separately and burn them from different addresses on the Ethereum blockchain (the original chain $WOMBAT has been created on) so the total and max supply are trackable by the likes of Coinmarketcap and Coingecko.
The first monthly burn will therefore happen on November 1st, including the Liquidity Burn (currently over 17k $WOMBAT) and the Purchase Burn (currently over 1.1m $WOMBAT).
For the Adoption Burn, we’ll also calculate Wombat app downloads (over 90k in October to date), the secondary NFT trades (over 120k USD in October to date), the Top Games installs (over 80k in October to date) and the unique users signing blockchain transactions (on average over 20k each day, times 23 days this month to date), amounting for a total Adoption Burn amount of over 20 million $WOMBAT for October to date!
Wrapping it up…
What we outlined here is much more than just how we want the tokenomics to work. It represents our vision of interconnectivity of all the ecosystem parts and the level of empowerment we want for our players. So many things are in your hands now, and we will get ours busy building for Wombat on and on.
