Q1 Token Burn.
17 Feb 2023, 09:25
Q1 Token Burn
As part of the token revamp plan, we will initiate a massive burn that will reduce the total $GOB supply by 1/3 to 500,000,000 tokens! The main reason for doing this is to reduce the token’s Fully Diluted Value (FDV). If the ratio between the market cap (tokens out in circulation x current price) and FDV (entire supply x current price) is high, then the token can be considered inflationary. Generally, a healthy MC:FDV ratio is between 1:2 to 1:4 if the token is venture funded. Our goal is to reach this ratio range by the end of Q1.
The sources for the token burn are as follows:
- 14,193,303 tokens burned from our funding rounds. These tokens were returned to us through seed/private/public refunds.
- 131,250,00 tokens burned from the P2E Rewards allocation. We are fully burning this allocation as part of our commitment to remove the inflationary sources and be more governance-focused.
- 67,056,697 tokens burned from the NFT Rewards allocation. This is another inflationary reduction that we will replace with a new incentive program (more on this later).
- 37,500,000 tokens burned from the Team allocation. The project founders are giving up a significant portion of their tokens to demonstrate commitment to the project’s long-term success.
Added together, we have the 250,000,000 tokens needed for the burn. The burn will be conducted in three stages:
- Stage 1: Funding rounds and team tokens are burned.
- Stage 2: P2E Rewards tokens are burned.
- Stage 3: NFT Rewards tokens are burned.