Marching Through The Patch: Burn Tokenomics
Contained herein, you will find the planned and near-completion milestones concerning product development.
A sought-after aspect of any Yield Framing project is a solid foundation for its price and reduced volatility. Price volatility in the Defi space exceedingly outweighs the fundamentals for building a high reputation for Binance Smart Chain (BSC), thus igniting insatiable demands for higher yields without explicit knowledge of the risks underlying aggregate revenues.
Coin Burning is a common practice in the crypto space. Several projects rely on it to reduce the total volume of coins, theoretically leading to their decrease. Unfortunately, the burn function would only make the tokens unusable or, in other words, burnt. In essence, this method is impractical as it fails to maintain price stability and create additional profit options.
Kebab Finance’s mission is to provide an unparalleled revenue-sharing mechanism to maintain price stability, improve value growth by rewarding the community, and making the token more attractive to investors. Therefore, our team has wholeheartedly been working on building the backbone of the next generation of Binance Smart Chain’s burning mechanism to support long-term value growth and price stability.
As we reflect on our 1st “Zoom Community Meet Up” and the recently announced series of exciting new updates, we continued to work incessantly on bringing value to Binance Smart Chain (BSC). Thanks to our community’s invaluable support and the agile work our team set to achieve.
Our next milestone is the burn mechanism’s release; as we are rapidly preparing through the next patch, the article will cover its tokenomics and the overall arguments about it.
Burning Kebab tokens for Token X
Burning will be a pretty simple process, allowing users to connect with their wallets to use the burn button to receive the X token.
The token’s name will be decided with a community vote upon the contest completion phase.
Deflationary Burn Mechanism
We decided to experiment with something new. We made the burn mechanism deflationary, which means the efficiency of the Kebab to X burn ratio will reduce by 0.01 on a daily basis. For instance, if you swap Kebab to X 1:1 on the first day, it will be 1:0.99 on the following day. It is forever deflationary.
Potential Arguments on Deflationary Burn
We strongly believe that our system will encourage investors to immediately burn their Kebab tokens to participate in fresh higher return X token pools and farms. The only way to receive this token will be through burning Kebab or receiving it through the market from farmers, and if the APY didn’t stabilize, there would always be new members to burn their Kebab to join the new farming pools.
The X token you will receive in exchange for burning Kebab will have Governance utility, which will enable our investors to participate in community decisions to influence the projects’ operational choices and development. We will use a simple snapshot tool for it right now, and we are planning to integrate a complete governance tool into the app interface.
Additional Yield and Special Pools
We plan on adding additional yield to the X token and unique pools with higher participation amounts in a forthcoming update. The minimum threshold to participate is 500 X token. However, this is something that we plan on doing based on our community votes through our governance tool when it is fully functional.
What should people expect on the patch day?
There will be a new staking pool for X tokens, and you will be able to farm X tokens by participating in new farming pairs and pools. Governance ability will be fully functional, and there will be a dedicated IFO page and Dashboard.
Giving exact timelines will only affect the operational efficiency and the professional execution of proper commends. Our team is working efficiently with the Certik to meet Binance Smart Chain’s Most Valuable Builder (MVB) demands to deliver a product that will build a high reputation for Binance Smart Chain to the best interest of our community. Stay tuned for the next big thing!
Feel free to comment and give your opinion. Don’t hesitate to ask us for the next Medium’s post subject.
If there’s anything you’d like to see or if you have questions, message us at any time.
Kebab Finance Team