Note: the Swingby token burning program has now ended. 25,000,000 have now been burtn forever!
To improve the Swingby token’s governance mechanism, 10% of the total supply will be burnt following the launch of our Chaos-MainNet bridge on December 28th.
This bridge will allow BTC, the world’s most valuable digital asset, to move across blockchains; the first version will bridge Bitcoin to Ethereum through Wrapped Bitcoins (“WBTC”).
Finally! BTC holders will be able to use their bitcoins in the $14.5b DeFi ecosystem and make use of the various decentralized lending, borrowing, and trading platforms.
Do you think DeFi is popular now? Wait until Swingby brings Bitcoin to it to make the DeFi space grow further.
How will these burns work?
Following Chaos-Mainnet launch, Each week the 7-day volume of the BTC-to-WBTC bridge (converted into USD) will be burned from the Swingby total supply if its above 500k USD. These burns will continue for 8 weeks or until 10% of the Swingby token supply is gone.
For example, if the BTC to WBTC bridge has processed over $1.5M in Bitcoin within the last 7 days, then $1.5M worth of Swingby tokens will be at the end of the week burnt forever.
How will this benefit the Skybridge network and token holders?
Burns will help to build a more healthy decentralized network in several different ways:
- Swingby token holders will be incentivized and rewarded for bringing more volume to the bridge. In short, burns contribute to reducing the total supply of Swingby tokens, making each token more scarce than before!
- Thanks to the increased volumes, the network will payout a higher APY to Metanode operators and liquidity providers.
- Consistent deflation of the bonded currency will contribute to stabilizing the network by reducing the network’s total supply for a given demand. Hence, it will also reward all Metanode participants by increasing the ratio of tokens bonded relative to the total supply.
1. How will the tokens be burnt?
The Binance Chain BEP2 token standard includes a native burn function. Once this function is invoked, the token’s total supply is reduced; these given tokens are removed forever. This action is irreversible.
2. How can I track the progress of the token burns?
Each week, after the burn event, we will publish an update on our Twitter, with the exact number of tokens and the burn transaction on the Binance Chain explorer. We will also release a new web page on the Swingby.Network website to display weekly burn figures.
3. What happens when the burn program ends?
Up to 100,000,000 Swingby tokens will be removed from existence. We estimate that the token burn program will conclude about 5–8 weeks after the Chaos-MainNet launch. At this point, the team will be focusing their efforts on releasing the next bridge that is (already) planned for late 2021 Q1.
4. How will the USD price of the Swingby token be calculated at each burn date?
We will use a 7-day daily price average using a reputable data provider like CoinMarketCap or CoinGecko to convert both the price of Swingby token and the price of BTC transacted on the bridge.