CREAM Finance – the decentralized money market protocol – has burned 6,075,000 or 67.5% of the $CREAM token supply.
🔥🔥🔥🍦🍦🍦🍦🍦🍦🍦🍦🔥🔥🔥
It is done. 6,075,000 $CREAM burned. 2,925,000 remain.
🔥🔥🔥🍦🍦🍦🍦🍦🍦🍦🍦🔥🔥🔥https://t.co/EeVNlHfuxe https://t.co/4tRA3KnrZV pic.twitter.com/iSRCXJfZFx— Cream Finance 🍦 (@CreamdotFinance) September 20, 2020
This token burn came as the result of a debate as to the best way to amend the overhang of tokens not in circulation. While all holders of CREAM thought a token burn was necessary, not everyone agreed on the execution. Various community proposals were discussed and ultimately the following breakdown was finalized by the team.
CREAM seed investors have agreed to a 75% token burn in return for accelerated vesting of 1 year, with monthly vesting. This same proposition was made available to the core CREAM team, but all members of the team declined this option as a sign of belief in the long-term success of CREAM Finance.
Since neither the team nor advisors tokens start vesting until February 8th, they will not be able to hugely influence governance with allocated CREAM tokens. There was also a minor naming change, with the remaining balance of liquidity mining incentives is now being called the Treasury. The CREAM team has alluded that this generalized name will support incentives for two new products currently under development.
What is CREAM?
CREAM Finance started out as a fork of Compound but has quickly built out new features to differentiate itself. In addition to lending and borrowing, users can leverage CREAM’s native automated market-maker (AMM) – CREAM Swap – to trade their cryptocurrencies without leaving the CREAM ecosystem and incurring additional gas fees. CREAM Finance was also the first Ethereum-based DeFi project to make the change to Binance Smart Chain (BSC).
Though they had faced some FUD around token supply, this recent move seems to have been well-received by the community on Twitter.
Pooof goes $600M worth of $cream.
Great choice to burn and reduce the fud. https://t.co/L76MaiFAKx
— Boxmining (@boxmining) September 19, 2020
It remains to be seen if this token burn will be enough to push CREAM back to ATHs and continue it’s earlier momentum, but seeing long-term commitment for the team is definitely a positive signal that shouldn’t be ignored. Upon the burn, the price of CREAM jumped by over 150%.
To stay with the project, be sure to follow them on Twitter.
Business Development and Operations at TrustToken – TUSD. Jack is a startup generalist and DeFi enthusiast. Stay connected with him by following @HHJackSun on Twitter.