$WOMBAT is becoming deflationary!
Dear $WOMBAT holders and members of the Wombat Family,
If you’ve read the post that I published yesterday, you kinda know what’s coming, so here we are with the big news:
The $WOMBAT token is becoming a deflationary asset from today on!
Starting today, we’ll be burning portions of $WOMBAT. While we may not always destroy equal amounts, this is only a beginning of an ongoing effort to permanently reduce the token supply.
To take a different view on this:
As a utility token, $WOMBAT should act like a kind of voucher, and vouchers are typically destroyed after they’ve been redeemed.
What we’re burning starting from today
As we’re providing liquidity for $WOMBAT on Uniswap v3 against ETH, we’re looking to burn the $WOMBAT we’re receiving from the fees on every trade. To date, this accounts for about 78k $WOMBAT which will be burned. Going forward, we plan to burn any $WOMBAT we’re receiving as a fee from the Uniswap v3 pool.
On top of that, and even more importantly, we’re using at least 90% of our proceeds from the Dungeon Master pack drop and the Season Pass sales for Season 5 to buy back tokens on KuCoin and burn those. At the time of writing this would mean:
- 300k WAX (~$27k) taken from pack drops
- At the current $WOMBAT price that’s about 9 million (!) $WOMBAT to be bought back and burned
- That will account for over 2% of the current circulating supply
We’ll make the WAX transfer of the pack sale proceeds on Tuesday, September 20th, at 2 pm UTC. Anything you purchase from the Season 5 drop until that time will also count towards the total burn amount!
The Season 5 drops can be found here: https://neftyblocks.com/c/dungeonitems
After the transfer, we’ll be buying $WOMBAT over 5 days to ensure fair pricing. As soon as the entire purchase is completed, we’ll transfer those tokens to a hot wallet on Ethereum to be burned and publish the burn transaction.
Where we’re going with this
For the next weeks and months, we’ll be introducing mechanisms to increase the ongoing demand for $WOMBAT and incentivize the permanent destruction of those tokens. Part of this will be to offer certain purchases that can only be paid for with $WOMBAT or offer a discount when paid for in $WOMBAT.
In addition, we’ll introduce a “$WOMBAT Burn” page so everyone can track the ongoing progress of the token burn.
Watch out for more announcements of the ongoing and future token burn activities, and feel free to burn tokens yourself to reduce the $WOMBAT supply forever 😉
And of course, we’ll be making additional, awesome announcements regarding the $WOMBAT token as early as next week!