We’re excited to announce that with our latest update, the VEMP token will now become deflationary!
From next week, when a staker wants to unstake their Metaverse tokens from our app they must either burn or lock-up 10,000 VEMP.
To unstake tokens, other than VEMP, users will now need to hold 10,000 VEMP tokens in their connected wallet and either burn or lock-up the tokens for two weeks.
If the user decides to burn, the tokens will be sent directly to a dead address that cannot be used to transfer tokens. As this address is unaccessible, and transactions on the blockchain are immutable (cannot be reversed), these tokens will remain here forever.
If the user decides to lock-up the tokens, they can either wait for the two week lock-up period to end, or withdraw their tokens early by burning 50% of the VEMP locked after one week.
Please note that this new burning and lock-up mechanic does not concern staking and unstaking VEMP. Instead, VEMP will continue to be stakable and unstakable freely without burn or lock-up requirements.
This change has been introduced to positively influence the tokenomics of the VEMP token. These more economically sound principles provide two main benefits.
- If users decide to lock-up their VEMP tokens, then the temporary reduced liquidity will help decrease the supply in the short term, which will contribute to more stable prices and less volatility.
- If users decide to burn their tokens, then the supply will be permanently reduced which will contribute to increasing the price of VEMP as demand increases as we grow.
This culmination of a deflationary supply and increasing demand, as new investors enter the vEmpire ecosystem, will ensure that the VEMP token can grow sustainably and without extremely sharp and volatile price action that can dissuade new investors from entering our ecosystem.
These changes have been put in place first and foremost to protect our community from short-term volatility. However it will be in the years ahead, once the vEmpire ecosystem has grown and introduced millions of new investors, that we will truly see the results of this update.
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The vEmpire Team ❤️
