Cream Finance announced that it will be burning a total of 6,075,000 (67.5%) CREAM tokens today. This scheduled burn will include 100% of governance tokens and 75% of seed tokens.
— Cream Finance 🍦 (@CreamdotFinance) September 19, 2020
CREAM Token Burn Brings ROI
Out of all the CREAM tokens that will be burned, there will be none coming from the current circulating supply of 149,928 CREAM. Instead, seed investors agreed to a 75% burn, in exchange for accelerated vesting of 1 year. From September 24 onwards, the seed token will now start vesting monthly.
However, team and advisor tokens did not agree with the same setup. For them, tokens will start to vest from February 8, 2021. In addition, CREAM shared that it still has plenty of collected fees and tokens in the treasury (previously called as the liquidity mining allocation) even after burning all the governance allocations.
Reasons for the CREAM Token Burn
According to its project blog, CREAM decided to move ahead with the burning of the 67.5% of its native token’s supply today. The decision came up resulting from this:
Burning of CREAM tokens will provide greater certainty to the current token holders. Moreover, it will create a stronger foundation for the long term success of the project.
The action of burning CREAM tokens will also be good for the community as this will remove the overhang of a large portion of tokens not in circulation. Furthermore, the burn is meant to assure the current CREAM holders that the value of the token will not be affected by the excess supply.
In addition, the burn of the CREAM token will attract a number of traders, and investors to the platform. The network participants will rush to buy and hodl while waiting to cash out when the value of the token increases.
The CREAM DAO team has a long-term view of the DeFi project and will continue to build and fund more projects in the future.
Cream Finance is a DeFi ecosystem whose primary objective is to provide lending, exchange, payment, and asset tokenization services. The project also operates as a permissionless and open-source protocol so any other internet participant can be a part of the development of the network.
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