A native community of prominent DeFi protocol Bancor presented a proposal that seeks to trigger a burn of 1 million BNT once collected by the Bancor Vortex in the v3 vault.
The aim is to help the protocol burn BNT as a trial to determine its impact on the token.
“DAO members have cited the fact that “burns” have a psychological effect on market participants and the same can happen if such an experiment is allowed to be carried out. For this reason, this proposal is seeking a one-time burn of 1m BNT when this amount has accumulated in the Bancor v3 vault.”
- The proposal is seeking a one-time burn of 1 million BNT. If passed and the community sees a positive impact on the token’s price, future proposals can be expected to specify new BNT burn amounts.
- At the time of writing, over 99% have voted in favor of BNT burning, and the community has until September 28th to cast their votes.
- The latest development comes months after the protocol launched Bancor v3 on the mainnet.
- In the previous version, Bancor Vortex accumulated fees in different tokens and swapped them for BNT, which was then used to purchase and burn vBNT, thereby slashing the circulating supply of the native asset.
- Instead of collecting a wide variety of token types, the Vortex on Bancor 3, on the other hand, enabled the collection of BNT exclusively, therefore triggering the Vortex results in a single swap of BNT for vBNT directly.
- In June, Bancor temporarily terminated its Impermanent Loss Protection program and cited “hostile market conditions” and “manipulative behavior” as the main causes behind the move.