One of the key drivers of the token economy is the number of tokens in free circulation. Arguably the biggest selling point of Bitcoin is the scarcity element. There will only be 21 million Bitcoins coming into circulation. If somehow that changed to 23 million tokens it would be detrimental to the Bitcoin narrative. Similarly token emission schedules are very important to maintain stability in circulating supply. So the max supply is never exceeded and tokens only enter into circulation when expected. Uncontrolled release of tokens into supply breaks away from the emission schedule and can negatively impact token economics.
As you may be aware 2 million tokens have entered into supply after the unfortunate events of last week. Today we are responding by two steps that will prevent any increase of YOP token supply and offset this black swan event. At first glance the release of those 2 million tokens could be looked at as an unexpected supply increase. Once you dig deeper into the YOPonomics, you can see that we are able to counter the release of those tokens. We are taking very transparent and firm action to balance circulating supply.
The YOP token emission schedule found in the YOPonomics document clearly outlines the maximum new supply of tokens to enter free circulation each quarter. For Q2 2021 there is a maximum of 6,138,889 YOP tokens scheduled to enter circulation. So the first step is we are committing to not breach this limit for Q2 2021. This means that there will be no extra tokens going into circulation, even though 2 million tokens have already gone into circulation. In fact we are already behind the projected curve of the token emission schedule. For Q1 2021 we ended with 1.5 million less tokens in supply.
The second step is to offset the current supply we are burning the equivalent number of team tokens. Yes, you read that right. We are going to burn 2 million YOP tokens from the team pool. This demonstrates our commitment, dedication and quest for transparency to support the project long term at all costs. In this case a cost of around $3 million to the team wallet. All actions of the team ultimately rest with the team, so the team pool will burn tokens.
The burn is 22% of all team tokens from the total of 8.8 million. The burn places the tokens into the Top 10 of highest $ value active tokens burnt by going to 0x0000000000000000000000000000000000000000. This is the dedicated Ethereum burn address. Once tokens are sent to 0x000…. they cannot be retrieved, but are clearly visible to everyone.
The token burn will take place on Wednesday 21st April 2021 2pm UTC. Once the tokens have been sent to the burn address we will share the TX hash.
“Our greatest glory is not in never falling, but in rising every time we fall.”
Token burn complete. The YOP contract was not configured for the 0x000 burn so we sent them to 0x888 burn address, in hindsight more befitting to the YOPonomics.
You can see the token burn on chain here: