Gaming and metaverse DAO giant Merit Circle voted to burn all remaining tokens left in the Community Incentives wallet as a way to reduce the total supply.
The project has been carrying out monthly token burns but decided in favor of bulk destruction.
- A proposal to burn 200 million MC tokens saw an overwhelming number of votes supporting the motion. Out of 232 votes, only three were against the idea.
- Following the creation of the Community Incentives wallet, 294 million tokens, which represent nearly 30% of the total one billion MC supply, were assigned to the wallet. The assets were supposed to be used for community rewards.
- However, the tokens have been sitting dormant in the Community Incentives wallet without utility since the allocation. Meanwhile, 6,125,000 MC tokens from the wallet have been burned monthly over the past nine months, leaving nearly 200 million coins left.
- According to an earlier proposal suggesting the burn of the remaining MC coins in the Community Incentives wallet, “keeping these tokens negatively bloats our tokenomics data and serves no beneficial purpose.”
- The current plan calling for votes said:
“Burning these (currently purposeless) tokens will significantly reduce the total supply of Merit Circle and will bring the fully diluted valuation more in line with the circulating market capitalization. Likewise it will remove any doubt from outsiders about upcoming token unlocks and whether these tokens will be hitting the market.”
- Based on MC’s price at the time of writing, the 200 million tokens are worth $147 million.