kenny 🎩 on Farcaster

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Jacek.degen.eth 🎩 pfp

Jacek.degen.eth 🎩

Thanks everyone for the feedback, still processing it all, but here are some of my thoughts on token burns, demand, and community alignment from today: Burning tokens alone won't create new demand. But I think token burns could still play an important role by aligning our community around shared goals. Just as examples (these are just ideas, not promises): 1. Imagine we burned 100 $DEGEN every time someone mentions DEGEN positively on Farcaster or X. Unlike airdrops (which get farmed and dumped), token burns reward the entire community by reducing supply. Instead of encouraging people to farm tokens to sell, burns encourage actions that benefit us all. 2. Another example is milestone-based burns: if we reach 100k wallets holding at least $10 in DEGEN, we burn tokens to celebrate. This aligns everyone's incentives toward shared growth and gives us clear goals to rally around. On the demand side, our protocol already earns around $30-60k per month, mostly from our liquidity pool and trading fees, plus income from treasury strategies like selling options. As our DEGEN app and mini-app gain traction, we hope this revenue will grow. We could start using this protocol revenue to buy back DEGEN from the market each month and burn it. Over a year, that's potentially over half a million dollars of buybacks, creating ongoing positive momentum. However, we also have the challenge of currently emitting ~90M DEGEN tokens per month (about $360k at current prices) through liquidity mining and allocations. Allocations will stop soon, but liquidity mining is a big question: at the current pace, that's potentially $4M of tokens emitted each year, much of which might get farmed and sold. Would we rather pause or reduce these token emissions and instead focus fully on: - Growing our fees and using them for DEGEN buybacks/burns - Introducing targeted token burns aligned with real community milestones or helpful actions like promoting DEGEN socially? Combining these strategies could really help us build more interest, attract long-term holders, and align incentives around community-driven goals. No decisions yet, just thinking aloud, and we'll discuss internally. Curious what you all think!

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kenny 🎩 pfp

personally not a fan of token burns, it's a strategy that's been tried by many many many projects and the market response I generally see is a little bump in price when the burn strategy is announced then no follow through on the market caring about the strategy after that, it gets priced in I'd still much rather see DEGEN return to its "turn content into currency" roots and think of new, innovative, robust ways to get DEGEN in the hands of creators (not through tipping though, that's obviously run it's course) DEGEN was flying high when we innovated on token distribution, and the fact we are the ONLY memecoin with a substantial treasury that can still be deployed to new community members is our greatest strength...but only if we use it creatively relying on token burning, something that's been done many times before, feels like we are drifting from those roots

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