Cream Finance, a decentralized protocol for exchanging and lending cryptocurrencies, on the evening of 20 September, held a large token burn. Cream Finance said in a statement that will burn 67.5% of the total tokens number. It means that a large number of C.R.E.A.M. tokens will be withdrawn from circulation.
Burned 6 million C.R.E.A.M. tokens.
The decentralized exchange protocol team stated that they had considered all possible solutions to reduce the supply of the CREAM token. And they came to the conclusion that burning most CREAM tokens is the best option. According to Cream Finance tweet, burning 67.5% of the total CREAM will destroy more than 6 million (6,075,000) tokens.
CREAM said everyone agrees that burning its tokens is good for the community. However, there were some problems with the amount of burning. How much to burn, as well as what percentage of which token to burn?
To find answers to these questions, the CREAM team had a proper discussion with key members of the community. As a result, they finally came to the following conclusion and the proportions of burning:
After burning, there are 2,925,000 tokens left, and the estimated current circulating stock is ~ 400,000. Although at Coinmarketcap the information has not been updated yet. At the time of writing, we see the following: total number of tokens – 9 million, circulating stock ~ 150,000.
CREAM also thanked the seed investors for their support of the project and said:
Thanks to our seed investors and their continued support and sacrifices for the project, they have agreed to a 75% burn in exchange for accelerated vesting of 1-year, monthly vesting. Specifically, seed tokens will now vest monthly starting September 24th.
In addition, the credit protocol stated that this option of burning and accelerated vesting was also offered to her team, but team members refused it.
Climbed to 11\ 12 place.
We want to say that the tokens burning had a positive effect on its cost and in general on the CREAM project capitalization. The increase was 9.5% from 19 to 21 September. It is the first such project capitalization growth in the last month, which has fallen since the platform launch on the Binance Smart Chain (BSC).
According to DeFi Pulse, the project capitalization at the time of writing is $238.4 million.
Thus, the token burning campaign allowed Cream Finance to slightly increase capitalization and 12th place in the DeFi platforms ranking. But in order to be in the top10, it will have to make more effort than a simple populist campaign.
The 11 place in the near future is possible, as the nearest competitor is very close to RenVM – $239.8 million.
But SushiSwap already ranks 10th, with almost twice the capitalization – $424.4 million.