Upcoming Changes to BULB’s Tokenomics Structure
Introduction
Hello BULBers!
This tokenomics update must be the most anticipated update in BULB’s history, and we are so excited to finally bring this exciting news to everyone on BULB. Tokenomics is absolutely essential to any crypto project and BULB is no exception.
In this article, we will break down three key aspects to our tokenomics structure as updated in our most recent whitepaper, namely total circulating supply, token allocation and token burn mechanics, in which each of these are critical to establishing the “new” BULB Token.
New Total Circulating Supply
Total circulating supply schedule with zero token burn
Firstly, on 1st April 2024, 250 million $BULB will be permanently burnt, reducing the total fixed supply from 1 Billion to 750 Million $BULB. We decided to make this decision for two reasons, first reducing the amount of BULB Token supply makes each existing token more valuable and second, because we wanted to share more value of BULB Tokens with the community.
To facilitate the token burning, all 250 Million $BULB will be sourced from the BULB Team and BULB’s Treasury, ensuring that more of the benefits can flow towards BULB’s users and private sale token holders.
Once we have completed this one-off token burn on 1st April 2024, we will post an official announcement on X. This should be super exciting for all BULB users!
New Token Allocation
New token allocation post-burning of 250 Million BULB Tokens From BULB’s Treasury
As a result of the one-off 250 Million BULB Token burn, the new token allocation will be as shown above, where User Rewards, Team & Advisors, and Private Token Holders will account for 66.7%, 31.7% and 1.7% respectively. With regards to the upcoming DEX listing and official liquidity pool, the BULB Team will be putting forth our own BULB Tokens and Solana to facilitate the establishment of an official liquidity pool.
Overall, our key rationale is to ensure that users always get the majority share of the BULB crypto-economy as ultimately, the value of Write-to-Earn and Read-to-Earn stems from the power of the BULB community.
New Token Burn Mechanics
BULB Token Burn Mechanics and Synergy with BULB Staking
BULB Staking will be released in mid to late-March and allow users to get a percentage of all the weekly platform spending based on the amount of BULB Tokens staked in the protocol. To further strengthen the BULB’s token-economy, we will be burning 25% of all token spending on BULB permanently, while the remaining 75% will flow directly back to the active stakers.
The core rationale behind this tokenomics structure is to promote a stronger circular economy, where the more platform activity and transactions there are, the more each BULB Token will be worth , and thereby distributing the real value back to all the token holders via reduction in supply. This means that the maximum supply of 750 Million BULB Tokens as mentioned above is only theoretical, in reality, the total maximum supply will continue to decrease over time based on the rate of consumption on the platform.
Final Remarks
We want to express that the BULB Team has given this a deep and careful thought, and we trust that this tokenomics update is a fresh, exciting and fair development to all stakeholders on BULB, whether you are a writer, reader, user, hodler or speculator.
Ultimately, the value of BULB, and by extension BULB Tokens, lies in the value of the use cases on the platform and the power of the collective BULB community. Thus, the BULB Team will continue to dedicate themselves to keep building BULB and develop more powerful and exciting token use cases, and nurture BULB into the best Web 3.0 Social Media Platform in the world.
