WAXHISPANO
We’re updating the token burn structure!
Hello, Wombat Family!
When the $WOMBAT token was first minted, we had a design for how we wanted it to be used — but burns were not part of that initial concept. However, our goal has always been creating healthy tokenomics for it — an approach we are now also employing in our plans for $WAS. A significant part of that is regulating the supply and demand in a way that ensures two things: sustaining a deflationary dynamic of the token and creating a sufficient treasury for Spielworks to reward our ever-growing community.
With the introduction of $WOMBAT burn, we were first using the said treasury to reduce the total supply. Although that did what it intended to do, there was still room for improvement because we weren’t taking tokens out of the active circulation. And now that we have more avenues for putting more tokens out there with the Wombat app rewards, liquidity pools, Treevolve and AtomicHub rewards, we will be focusing on exactly that.
In essence, they boil down to two things:
- $WAS also being part of the process
- Aligning the token burn more to the economic activity within the ecosystem, i.e. empowering users, token holders and community members to have a tangible impact on the token supply.
In practice, this will include:
- AtomicHub fees buyback and burn. Currently, 0.6% of the total trading volume on AtomicHub on WAX is used as funding for this.
- Funding from Reverties. 80% of the interest proceeds are converted into $WOMBAT and burned.
- The $WOMBAT/$WAS liquidity pool fees will are being burned
- The $WOMBAT tokens spent in Dungeon Master/Dungeon Worlds shop will continue contributing to the token burn at a 50% rate.
In addition to that…
While we are not excluding $WAS from the token burn policy entirely, we will be taking a slightly different approach with our ‘social’ token. For the time being, we will be utilizing the $WAS/$ETH liquidity pool on Uniswap and the accruing fees to buy back and hold $WAS to extend our treasury instead of destroying it. Effectively, this will allow us to take portions of the asset out of circulation and accumulate funds for social-driven ecosystem rewards.
Wrapping it up…
We believe restructuring the token burns this way will allow for healthier ecosystem development and will overall have a positive impact on your $WOMBAT and $WAS holdings. The new approach has a lot of potential, and we will be actively working on adding new deflationary mechanisms for both tokens that reflect our vision for them.
Join the Wombat Family!
Our team and other community members will be happy to discuss all things blockchain gaming, NFTs, blockchain, games and whatnot. Come say hi on:
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