This page represents my personal views regarding different topics that have been asked to CRC candidates. The document will be updated accordingly
Last update: Thu 20 Feb, 16:30
1. To burn or not to burn
A recent hot (pun intended) topic that ended up with a lot of discussion on our different Telegram channels was about burning or not burning the ELA reserved for the CRC. I am not in favor of burning any ELA at the moment. And here is why:
The only (to my knowledge) real case where token burning was beneficial to a cryptocurrency is BNB. However, even for BNB it has been shown that the price increases were not directly correlated to the token burn events . Another project that attempted a toke burn – but didn’t succeed – is Stellar (burnt 50M+ tokens) . A slight increase in the price (~25%) following the burn event took place just to stay for a bit before falling back again!
In our case, it seems that the goal of the burn (based on what I read so far) is to attract more investors by removing a potential pain point they have (the reserved coins), which I can completely understand, and the belief of a price increase. I am not against making investors happy as they are playing an important role in shaping the future of the project. However, as of today, there is statistically no significant correlation between token/coin burn and stable price increase and if the only reason of the burn is to hope for a price increase (and also potentially happy investors), we are then taking a big risk of loosing the funds initially allocated to the CRC leaving it powerless.
Another concern was about the low price of ELA making the 16.5 M worth “not so much”. It is true that 16.5M of ELA at $2 doesn’t sound a lot (everything is relative), but we haven’t always been at that price level and we will not stay there (and the whole 16.5M cannot be used at once right now anyway). If we are having such discussions right now it’s because we believe in the project and are ready to make everything to succeed! We are about to experience something extremely important with the very first CRC election ever and I don’t think it’s the right time to take a decision on such an important topic! We have to give a chance to the first elected CRC without removing their main tool! We want ELA to be the coin we will use for all our dapps and ecosystem. This is how we want to convince the investors (and see the price increase), not by letting them think that burning was our only solution/plan.
3. Exchange listing
– Token Burns: Not really as good as you think
Photo by Element5 Digital on Unsplash