The Remaining Supply

The Remaining Supply
Photo by Jason Pofahl / Unsplash

As part of the migration to AGFI V3, which we discuss in detail here, a percentage of the token supply was burned after the airdrops to all holders to bring it back towards the supply levels of the AGFI V1 circulating supply. There however remains a portion that has not been burned: 100 billion tokens (around 15% of the supply right now).

Instead of burning this supply, it will be sent to the AGFI DAO treasury. Before you panic about that, let's discuss what burning actually means and what alternatives are available instead of burning. AGFI is a community-controlled token now, and so a vote can pass to just burn them, but the community should also be informed about the options available beyond burning.

Burn Them All

This is a common default request from a lot of people. Burning is erroneously attributed to being a "bullish" action. However burning tokens that aren't actually in circulation is completely meaningless. It served a purpose for AGFI V1 to "absorb" the reflection bug, but as V3 is not a reflections token it will not do anything. The trade tax on AGFI that burns a percentage of token swaps on Uniswap does have value, as it's slowly removing currently circulating supply. If the 100 Billion tokens were burned right now, then nothing changes for AGFI except that the treasury holds next to no AGFI.

Rewards

Projects with staking systems built into them typically use un-circulating or mint new tokens to provide staking rewards. If the community retains the token supply, it has the option to introduce alternative staking reward systems to the AGFI ecosystem. These staking rewards don't have to be staking of AGFI or AGFI liquidity tokens, they can be staking of other assets. The 100 Billion tokens could be used to fund a number of reward systems, as long as those rewards are distributed sustainably.

Bridging

A lot of projects bridge to other blockchain networks. Layer 2 networks or alternative EVM chains like the Binance Smart Chain can provide secondary systems that are lower cost to use compared to Ethereum and expand project adoption. Every bridged network requires some tokens to act as "bridge liquidity" - that is tokens available for swapping between the networks. If AGFI were to be bridged to another network, both networks would require some number of tokens available for people to exchange as they swap between networks. The 100 Billion tokens could be used to seed that bridge liquidity until it stabilizes.

You Decide

Burning is one option, but as you can see there are many other options available for the AGFI tokens that will be added to the treasury. As a community it's your responsibility to start talking about what you want these tokens to actually do - what paths of expansion do you want AGFI to go down? Start voicing your opinions in the community and in the DAO today!

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