Can a burn protocol be started on WRT dex to stabalise bleedout of value of WRT token.Suggested use of ADA rewards generated from ADA/WRT farm,to buy back and burn WRT tokens.
Cardano does not really support any kind of burn mechanism as is. From the solutions I’ve seen elsewhere any sort of ‘burning’ of cardano tokens is usually just simply sending them to a wallet that no one has access to. technically the tokens still exist but they can’t ever be accessed anymore. This solution can work but relies on you to trust the team/project in that this ‘burn wallet’ actually cannot be accessed by someone which can be tough. I’d like to see a more elegant solution for this in future, one that does not require you to trust someone that they did not keep the seed phrase to any specific wallet.
As for a buyback solution, this is actually something that’s a possibility but would be for the DAO to decide. Possibly a DAO vote in future.
p.s buyback solution was mentioned as a possibility all the way back in this blog post but these are very long term plans and suggestions with no specific ETA or guarantee. the current emission plan is set to last around 5-6 years so depending on future conditions and what DAO wants to do with this.
I would rather have the value of WRT be increased by building a strong DEX/Launchpad and whatever, instead of gimmicks like burning tokens. I see token burning as an unhealthy way to prop up prices.
I favor a working token circulation, like a well planned out buyback by the platform income resulting in new farming incentives and thus only providing value for WR if the platform is in use, instead of passive “gains” by halving the token supply.
Halving of tokens means, the runaway of the token will shorten - hence, in a sense, “future” profits of token holders (from treasury/farming incentives) are stolen, for short term “right now” gains. I see this as shortsighted and an unhealthy gimmick.
Well, of course, all of this is just my opinion, but I think, we would far way better, with going a more planned route and invest into new features/versions of the DEX (Zap-Ins, Pro-Subscription, Buy Backs and so many more) and Token Utility improvements/enhancements and maybe some TVL boosting marketing (perhaps with utility FT sells); both would generate more TVL and higher value for the platform and WRT (IMO).
Tldr.: I see token halving as the early signs of a project/community to cash out instead of going the long route