In an exciting development, Merit Circle is moving to maintain its prominence in the gaming and metaverse. The DAO voted that all remaining MC tokens in its Community Incentives wallet would be burned. This process serves to cut down the project’s total token supply.
Some new projects were created to help support virtual world activities as the attention in metaverse kept rising. Merit Circle cryptocurrency aims at maximising value in metaverse activities such as games. The crypto centre is focused on virtual investments and crypto assets.
The DAO used to have a monthly burning scheme for the MC tokens that were stored in its wallet. It currently has an enormous agreement which will wipe out all tokens.
Merit Circle Agreed To Burn MC Tokens
Merit Circle proposed to use 200 million MC tokens from its Community Incentives wallet. They are estimated to be worth $147 million. It received significant positive votes. Detail revealed that 33% of the 232 votes cast were in favor of the burning motion.
After its creation, 30% of 1 billion MC tokens were transferred to the Community Incentives wallet. It is intended to provide community rewards tokens. However, the tokens have remained dormant without serving any utility purpose from the time of the wallet’s creation.
The project has therefore devised an annual burning procedure for the MC tokens stored in the wallet, according to MIP-7. The DAO maintained a monthly burning rate of 6.125,000 MC tokens in the wallet over the last nine months. Nevertheless, there are approximately 200 million MC tokens still in the wallet.
Merit Circle DAO pointed out that the total token supply is bloated by dormant coins. For one, they are counted as part of the crypto’s total token supply. Additionally, they are part of the project’s diluted valuation and counted in future token unlock calculations.
Impact Of MC Tokens Burn
Merit Circle will burn the 200 million MC tokens. This will decrease the overall token supply. The fully diluted value will be aligned with the project’s circulating market capital.
A massive token destruction will give outsiders more faith in the project, and the upcoming token unlocks. Furthermore, they will believe that the tokens will emerge according to the project’s roadmap.
During the crypto market’s bullish trend, the Merit Circle crypto joined the train of massive gainers. The price of MC hovers around $0.762, indicating that there is increasing momentum over the next 24 hours.
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