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CREAM Finance announced a large token burn, thanks to which, the price of CREAM tokens suddenly increased dramatically.
Decentralized cryptocurrency exchange protocol CREAM Finance has announced its decision to conduct a significant token burn today, September 20, following a serious internal discussion.
The protocol’s official account explains that after considering several possible reductions in supply, the solution to burn 67% of the total existing CREAM token supply was chosen. This means that over 6 million CREAM tokens will be gone forever once the coin burn is complete.
Goodbye governance tokens!
In an official blog post, the team at CREAM Finance explained that all governance tokens and 7.5% tokens in the Seed round will be destroyed.
“The amount of coins burned this time includes 100% “administration” tokens and 7.5% Seed tokens. We believe this action will provide more certainty to existing token holders, while creating a stronger foundation for the long-term development of the project.”
Tokens owned by liquidity providers and those involved in the development of the protocol and Compound will not be affected.
As such, liquidity providers will now control 61.5% of the total CREAM supply, while the development team will hold 23.1%. This token redistribution is made possible thanks to the absolute elimination of the number of governance tokens, which account for 60% of the total supply to date.
CREAM increased by more than 130%
This news seems to have yielded outstanding results for the protocol’s CREAM token. The price of CREAM spiked almost immediately after the announcement was made today.
CREAM rose from around $70 to $165, marking a 134% increase. At the time of posting, CREAM is trading around $133, with total assets locked (TVL) in the defi protocol at $258 million.
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