Decentralized exchange and lending platform C.R.E.A.M. has revealed that it will carry out a token burn on Sept. 20. In an announcement, it stated that the burn will eliminate 6,075,000 CREAM tokens, making up 67.5 percent of its total current supply.
The platform, whose name is an acronym that stands for ‘Crypto Rules Everything Around Me,’ is currently in its beta testing phase. Based on the Balancer and Compound Finance decentralized protocols, CREAM aims to become a fully decentralized exchange and lending ecosystem.
Accelerated Vesting Proposals
According to CREAM, though the platform community agreed that a token burn would be good for the ecosystem, there was a measure of disagreement regarding how much to burn. Some burn proposals were deemed too bland to make a difference to the seed, team and advisor token allocations. Others were deemed opportunistic and overly favorable to current CREAM holders, as against long-term growth.
To this end says CREAM, key community members came together to discuss the proposals at length, resulting in the following consensus decision:
In so doing, the project is demonstrating its confidence in its long-term growth potential by demonstrating to CREAM token holders that near-term gain is not the team’s priority. While seed investors now have accelerated vesting of one year with monthly vesting, CREAM says all team members were also offered this deal but declined.
An excerpt from the announcement reads:
“The same burn and accelerated vesting option was also provided to the Team, but every team member declined this option as the team believes in what C.R.E.A.M. is building, with a long-term view on the project. Given that team and advisor tokens do not vest until Feb. 8, neither of these groups will have votes outside of what they may have liquidity mined until then.”
According to the announcement, CREAM’s current circulating supply of 149,928 tokens will remain untouched. The burned 6,075,000 CREAM tokens will be taken exclusively from the governance and seed tokens.
CREAM says that in addition to creating scarcity, which boosts the value of the token, this also signals to investors that CREAM has an eye on the long game and consequently is worth investing in.