Proposal: Apecoin Burn - Utility of Apecoin:The NFT Currency of Magic Eden ETH Platform and others

[makeagod.eth]

Introduction: Apecoin, the planned cryptocurrency of Bored Ape Yacht Club (BAYC), will become the primary NFT currency with the launch of the Magic Eden ETH platform later this year. This proposal aims to implement a token burning model that encourages long-term value preservation and community engagement.

Token Burning Model: The Apecoin token burning model will be structured as follows:

Burning Cycle: Apecoin will undergo a token burn event every 3 months. During each cycle, a fixed amount of Apecoins will be burned from the supply.

Maximum Burn: The maximum amount that can be burned during each burn event is max. capped at 2% (0,75 fix & potential 1,25%) of the total supply. This ensures that token burning does not become too drastic and maintains a degree of stability.

Minimum Burn: Regardless of the above rules, at least 0.75% of the total supply from the 50% retained tokens will be burned during each burn event, ensuring regular reductions in the supply.

Community Decision: The community will have the authority to determine the exact amount burned during each burn event. This can be done through voting or governance mechanisms to involve the community in decision-making.

Why This Model? This token burning model offers several advantages:

Long-Term Value Preservation: Regular burns gradually reduce the supply of Apecoins, increasing scarcity and the token’s value over the long term.

Community Participation: Involving the community in determining the burned amount enhances decentralization and democratic control over token management.

Stability: Capping the maximum burn at 2% per burn event prevents excessive token burning that could jeopardize token stability.

Apecoin becomes a token that promotes both value preservation and active community involvement. This model provides a win-win situation for all stakeholders and could help make Apecoin a strong and sustainable NFT currency on the Magic Eden ETH platform.

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I would also reach out to help develop a concept and submit everything on time. My German blood urges me for such precise actions…

I’m very eager to hear your opinion on this and look forward to the discussion!

Best regards
Johannes

[secengjeff]

Burning tokens would only serve to further concentrate ownership (and power) with Yuga, affiliated wallets, and a few whales. The more inclusive approach to preservation and community engagement would be to thoughtfully apply our treasury in support of high ROI projects that increase token utility, and return value to the community. This will also decentralize the token over time.

[makeagod.eth]

You’re right. However, what if we were to use the capital from the APE Foundation for that purpose?

A generally higher long-term demand for ApeCoin would be in all of our best interests, regardless of whether it’s centralized or decentralized.

[secengjeff]

The treasury is the only tokens we could theoretically burn. The rest belongs to others and the contract is immutable (just to state the obvious).

[makeagod.eth]

Then, it’s not a selection criterion. Whether it’s centralized or decentralized doesn’t necessarily have to be relevant, as can be seen in the recent news about Vitalik.