CREAM is a decentralized exchange and lending platform, the project teams announced burning 67.5% of the total offer. The objective is to provide greater certainty to token holders.
67.5% of the tokens burnt
CREAM (Crypto Rules Everything Around Me) is a protocol for exchanging and lending cryptocurrencies, based on Compound and Balancer. The latter was launched in mid-July on the Binance Chain.
Cream team announced burning of 67.5% of the total CREAM token offering. As a result, 2.925 million of the 9 million total tokens were burnt. This destruction was deemed good by the ecosystem community as it should provide greater certainty to CREAM holders.
The distribution of the tokens to be destroyed was discussed at length with prominent members of the community until a consensus was reached. Thus, the tokens to be destroyed are those held by the development team, project advisors, cash providers and Compound.
“Some proposals were deemed overly opportunistic and favorable to the current Cream holders over long-term growth, while others seemed not drastic enough to make a large difference or cut into the Seed/Team/Advisor allocation. “Announcement on Medium
As a result, the destruction followed the following pattern:
Getting back on track
This news is timely for CREAM, whose share price has been falling steadily.
Indeed, on September 16th, a bug in the staking mechanism caused the over-creation of CREAM tokens. Until the bug was resolved, the protocol was producing 25,000 CREAMs per day, compared to the expected 2,500.
This bug resulted in a 48% drop in price within 24 hours. Thus, it went from 107 dollars on September 16 to 52 dollars on September 17.
Since the announcement of the destruction of 67.5% of the offer, the price has regained momentum, reaching $168 each. This trend has eased somewhat, with the price moving to $106 each at the time of writing.