In September 2024, a governance vote was put forth where the community voted “Yes” to buy back and burn QUICK tokens using 100% of protocol revenue for a 3 month trial. This was called the ‘Trial of Fire’ and started October 1, 2024, replacing staking in the Dragon’s Lair with a burn instead.
The rationale behind this initiative was to switch things up and explore a new mechanism to explore the utility and tokenomics for QUICK, also aiming to improve community sentiment around the token.
This trial period is over (but the current burn will be extended until this vote has completed), meaning the introduction of this new proposal for the dragon community to decide to extend this trial or reinstate QUICK staking.
Read below for more information so you can decide on how you want to proceed.
Next Steps:
- To begin, the governance discussion on the official QuickSwap Reddit will run until Saturday, January 4 at 4:30 PM UTC
- Once the Reddit discussions finish, a formal Snapshot vote will begin and run until Wednesday, January 8 at 4:30 PM UTC
- Once you’ve read this entire blog post, make sure to visit the official QuickSwap Reddit discussion forum to share your perspective with your fellow community members
The ‘Trial Of Fire” - How Did The Token Burn Perform?
As of January 1, 2025, here’s an overall breakdown of where the numbers lie in regards to the burn, which started on October 1, 2024 (a 93 day period):
- Total Supply: 1,000,000,000 QUICK
- Circulating Supply: 746,020,000 QUICK
- Burned Tokens to Date: 9,744,590 QUICK
- Burned Tokens Since October 1: 8,146,591 QUICK
- Burned Tokens on October 1: 1,598,000 QUICK
Below are stats related to the impact on the supply of QUICK tokens:
- Total Supply: 0.97% of the total supply burned to date
- Circulating Supply: 1.31% of the circulating supply burned to date
- Annual Burn Impact on Total Supply: With an annual burn of 31.96 million tokens, the total supply would decrease by 3.20% per year
- Annual Burn Impact on Circulating Supply: At 746.02 million tokens in circulation, the annual burn would reduce the circulating supply by 4.29% per year
So what does this mean as a whole for the QUICK token?
The daily burn rate since October 1 was ~87,598 QUICK/day, which has drastically increased since the previous analysis when it was ~74,471 QUICK/day. Of course, the greater the amount of tokens burned, the greater the impact on both the circulating and total supply.
Why Do A Token Burn, Anyway?
As outlined in the last governance proposal, token burns can serve as important mechanisms for projects and their communities. When a token burn is implemented, the project permanently removes a certain amount of its tokens from circulation.
This creates scarcity because the circulating supply has been reduced - and it’s done through purchasing tokens off the open market and then sending them to a Bur address (private wallet that can’t be accessed because it doesn’t have a private key).
Other potential benefits of token burns:
- Increasing the value of the remaining tokens that are in circulation
- Align the interests of token holders with those of the project
- Boosting the token/project reputation given the perception of a project’s commitment to long-term success
- Reduced inflation to increase the stability of the token’s price
QUICK Token Burn Duration: Extend Trial Or Make Permanent?
Now that you have a better understanding of the overall impact and effects of the initial 3 month burn trial, it’s time for the QuickSwap community to discuss and vote on whether another 3 month trial should be put into effect or if the protocol should return to distributing revenue in the form of staking rewards for QUICK stakers in the Dragon’s Lair.
Note that while a certain amount of data has been gathered from this initial burn trial, it’s been more challenging to judge and assess the overall effects of this burn given that the altcoin market has been stagnant during the last 3-month period - this is why another vote is being introduced at this stage.
The options that will be outlined in the upcoming vote are as follows:
- Initiate another 3 month ‘Trial of Fire’ where 100% of QUICK tokens will be bought back and burned via protocol revenue (moving to a more permanent tokenomics model after this next ‘Trial of Fire’
- Discontinue the burning of QUICK tokens and return back to using bought back QUICK to provide rewards to stakers
If the broader community voices a different opinion from the options above, there will be an opportunity to discuss on the Reddit and Discord forums for consideration to amend the voting options prior to the vote going live on Snapshot.
Join the Discussion
As always, QuickSwap community members are encouraged to participate in and contribute to QuickSwap governance discussions and proposals across all of QuickSwap’s online forums, especially on Reddit. As a Dragon, you are a valued community member and your opinion matters – but you have to participate in community voting procedures to make it count.
Critical decisions guiding QuickSwap’s strategic development will always be determined by way of decentralised governance. QuickSwap’s future is in your hands, so make your voice heard!