After burning 9 Billion tokens from the total supply on July 27th,
we committed to make the 1UP token become a deflationary token.
What it would precisely look like, we were not entirely sure.
What we did know though, is that we wanted to benefit the Uptrennd community in both the short-term and long-term.
We knew continuing to bring ample utility and scarcity to the token were both priorities.
After spending significant time discussing ideas and weighing options,
we now have a new model that is designed to keep the circulating supply low,
and keep the scarcity of the token increasing over time.
We wanted to make sure that users who join Uptrennd in ten years time still had a relatively equal opportunity to users today,
while simultaneously rewarding you, our early community members.
A delicate balance.
Seen above is the graph that shows the status of the uptrennd economy (in grey) and the amount of tokens a user earns per upvote (in white).
In our current economy, we currently have over 900 Million tokens in cold-storage, and less than 100 Million tokens in the circulating supply. This means 1 upvote = 1 token.
To understand the graph a bit better, if we were to burn 101 Million tokens right now, our cold storage supply would then be below 900M, and our circulating supply would be below 100M. This means members would earn 0.9 tokens per upvote.
Points on the platform will continue to operate as normal.
1 Upvote = (1 point X your level multiplier).
When the economy moves off the 1:1 peg due to an increase in circulating supply or decrease in cold storage supply,
the conversion will happen when converting points into tokens on the withdrawal page.
This model ensures that we will not run out of tokens, even with a deflationary token.
1) As the circulating supply increases, the number of points per token increases.
This means it becomes "more affordable" for people to purchase tokens on exchanges to be used to level-up and/or buy advertisements.
When users then deposit the tokens they bought onto Uptrennd, they re-enter the cold-storage supply.
Although we are not sure where, this economy set-up should create an ideal scenario for a low circulating supply.
We count points not locked into accounts as in the circulating supply.
Currently there are 2.6 Million points not locked into accounts.
2) Even though the amount of points per token decrease, the scarcity will be increasing.
This means that even for people who come late on the platform, the value of an upvote likely will still be close to on-par.
We will be burning 30% of the amount of points Uptrennd members used to Level Up each month!
As of right now, there have been just over 800,000 points invested into accounts for the month of September.
In effect, we will be burning over 240,000 tokens this month!
This dynamic means that when you invest in yourself by leveling-up,
you are also helping the Uptrennd token become more rare!
So congrats to all who have levelled up this month!
The Stats for levelling up can be seen here under "Monthly Locked in Points"
Previously we announced in this post that we would be burning 20% of the points issued for August.
We will still do this, and then from September onwards, move forward with 30% of locked in points
The Uptrennd Community Growth Fund
In addition to the burn, we will also be allocating an additional 20% of the Invested Point amount to the Community Growth Fund.
With already over 800,000 points locked into members accounts, we will be allocating 160,000 points into the CGF.
The Community Growth Fund will be used to fuel the growth of the Uptrennd ecosystem.
Tokens in the fund will be used to pay community members like yourselves that go the extra mile and perform various tasks for Uptrennd.
The CGF will also be used for exchange listings, and anything at all that supports the continued growth and expansion of this community.
How these tokens are used will eventually be FULLY up to the community, once we slowly transition into a DAO.
For now, leave all your suggestions/thoughts on where/how these CGF tokens should be used, or if we should hold them for now!
It has been an honour growing this community with all of you!
Seeing everyone contributing their skills, passions and time has been absolutely astonishing.
Lately we've had authors who write consistently incredible OC, the first ever Uptrennd tattoo, an Uptrenndian presenting our community to over 4,000 people, Uptrennd members stepping up to moderate and keep this platform clean, and a positive vibe like no other online.
Together, we have not just created a website,
we have created a community,
and I'm blessed to share it with all of you!
If we all do a little, collectively, we can achieve a LOT
Uptrennd Nation, to the Future!
A platform designed to redistribute wealth from corporations to individuals. A site that empowers content creators to thrive through creating digital content.