Let’s heat it up: Details behind SugarBounce’s second $TIP burn
Second $TIP token-burn
$TIP token is at the heart of all transactions and is designed to be an integral function within each of Sugar verticals. Following the release of the SugarBounce dApp, the protocol matches a percentage of the total revenue generated on Sugar Streams to burn $TIP from the open market, on a quarterly basis.
Adhering to our token fundamentals, the protocol conducted its second quarterly $TIP burn on 11 August, 2022 by wiping out 146,582 $TIP tokens.
This token-burn would lead to a reduction in the total supply of the token or in other words create a “deflationary” event that would theoretically boost the value of the token, leading to sustainable platform growth.
A Deflationary Token Model
A prominent problem behind the volatility in the crypto space stems from the purely inflationary token models that many crypto protocols operate on, which not only leads to eventual devaluation of the token itself but also erodes the wealth of long-term token holders.
Don’t worry! Such is not the case with SugarBounce.
SugarBounce has a performance-based token model which directly correlates token adoption into token emission, removing the inflationary nature of token unlocks. Let’s take a closer look at how SugarBounce boosts the deflationary utility of its native token to ensure the demand and supply metrics are always tilted in the $TIP hodlers’ favor.
The value of a token is a function of both supply and demand. The higher the demand for a given asset, generally the higher its value. And conversely, the lower the supply, the higher its value.SugarBounce tokenomics are designed with mechanisms in place that ensure its supply reduces over time whereas demand increases with increased protocol usage. One such mechanism is the quarterly $TIP token-burn mechanism that induces a deflationary effect by reducing the circulating supply of $TIP, thus creating a supply shortage and potentially boosting our native token’s valuation in the long run.
SugarBounce is proud to boast a deflationary model ecosystem for our native token $TIP. Our tokenomics’ fundamentals like burn mechanism are an integral part of our protocol’s upward mobility — by ensuring a shift in $TIP’s demand-supply metrics to a favorable standard, we will ensure that SugarBounce is not only a successful protocol but also a sustainable one.
SugarBounce aims to provide a consummate ecosystem for all NSFW entertainment needs of the next generation of viewers with the goal to decentralize adult content and lead the field in this emerging adult entertainment market by demonstrating how crypto and the blockchain can safely and effectively work in a highly-profitable NSFW context. The platform is geared towards making the lives of people working in the adult industry better and will bring in an amalgamation of P2P streaming, IPFS, and NFT Tech to bring a never-seen-before experience to viewers.