We want to propose a 20% token burn aimed at enhancing the value and scarcity of SPA.
Here’s why considering this move and its potential impact:
Why?
Increase Value: Reducing the total supply of SPA tokens can help increase value.
Boost Investor Confidence: Demonstrates our commitment to long-term growth and sustainability.
Market Dynamics: A lower supply can create upward pressure on price, benefiting all holders.
When?
Proposed Date: September 1, 2024
Process: The burn will be executed in a transparent and verifiable manner.
Impact:
Scarcity: Fewer tokens in circulation will make each remaining token more valuable.
Price Action: We anticipate a positive reaction in the market, potentially driving the price towards current ATH and beyond.
Community Trust: Strengthening trust and support from our community by showing our commitment to enhancing token value.
We believe this burn will set the stage for a robust and prosperous future for SPA Token.
Additional to increase demand:
Sell a portion of our Arbitrum token holdings to fund the listing fees and associated costs for getting SPA Token listed on Binance.
Your feedback and support are crucial for making this initiative a success.
Burning tokens from treasury did not lead to any price action last time around. I think around 250M tokens were burnt. Price appreciates only when the circulating supply is impacted. Binance listings no longer require fees etc. They currently have a community based voting process to list tokens.
The burn was not much, more to create impact, or buy back from market. And if the listing doesn’t require any fees, Sperax should start register and wait the community voting at least what they can do.
Team has already submitted all the details multiple times as far as I know. Binance team also gets monthly updates from the Sperax team. @Shaleen can comment more on that.
There’s around 1.8 Bn tokens left with the treasury. If 1 Bn tokens are burnt then how will future protocol related incentives be distributed. SPA holders who do not stake are currently not contributing towards the growth of the protocol. If there’s no growth of the protocol through incentives and new developments then there’s no possible long term growth in SPA price.
In my opinion burning protocols from Treasury is not going to work, even if it works it is going to be very short term. The real discussions should be around how to utilize the available treasury tokens to increase the TVL of the protocol and reach product market fit.
We are not authorised to discuss any listing activities with anybody. Every stakeholders gets regular update from the Sperax Team.
The Sperax community should discuss more on how to burn SPA tokens already in supply which will demonstrate our commitment to long term growth. Increasing USDs TVL will directly help in burning SPA from circulating supply. USDs TVL of 10 million, which is 2/3 of the current SPA market cap, helps us burn more than 30 million SPA tokens in a year.
Treasury tokens doesn’t affect anything in anyway. It’s for current and future products which are being developed. Demeter 2.0 farms is getting 32 million SPA/xSPA from treasury in the first 8 weeks and we will continue with emission in future as well. Sperax DEX and CDP stablecoin will also have a lot of rewards. Burning Treasury tokens won’t create any scarcity because it is not the part of the market or trades.
We can strengthen trust and support our community by increasing the protocol TVL which stands at 4.14 million with veSPA and USDs.
Since we have received all feedback possible on this proposal, we can move this to voting. The formalized one to be moved is mentioned below. Since we can’t discuss listing and related work - removing that portion of the proposal.
Topic: SPA Token Burn From Treasury
Author(s): Sperax Community
Reference: SPA, Treasury
Created: July 16th, 2024
Summary
Burn 20% SPA token of total supply from treasury
Motivation
We want to propose a 20% token burn aimed at enhancing the value and scarcity of SPA.
Increase Value: Reducing the total supply of SPA tokens can help increase value.
Boost Investor Confidence: Demonstrates our commitment to long-term growth and sustainability.
Market Dynamics: A lower supply can create upward price pressure, benefiting all holders.
Overview
When should we burn the tokens: Proposed Date: September 1, 2024
How should we burn the tokens: The burn will be executed in a transparent and verifiable manner.
There are around 1.8 billion tokens left with the treasury. If 1 Bn tokens are burnt then we can face issues concerning future incentives. Burning may not impact the current token as the proposal suggests because the burning will happen from the reserves that are not in supply.
Technical Specifications
Burn 20% SPA tokens i.e. 1 Billion SPA tokens from Treasury.
Voting
For: Approve 1 Billion SPA token burn from treasury
Against: Reject 1 Billion SPA token burn from treasury