- Pangolin is set to burn more than half of the Pangolin (PNG) token supply.
- This comes after it has opened the voting on its tokenomics improvement proposal.
Pangolin, a community-driven decentralized exchange for Avalanche and Ethereum assets, is set to burn more than half of the Pangolin (PNG) token supply after it has opened the voting on its tokenomics improvement proposal.
Note that the proposal is to improve the underlying tokenomics of Pangolin’s native token PNG, which is to reduce the supply by 57%. This means reducing PNG’s maximum supply from 538 million to 230 million.
According to the team, the proposal will be implemented within Pangolin V2, which will be launched on November 21. This is the result of Pangolin’s tokenomics improvement proposal that aims to offer a more sustainable token distribution model. As a result, the proposal proposes reducing the 28-year emission plan to 4 years.
As a deflationary model is set to be adopted, the emissions will be reduced by 1000 tokens every month. But as of now, Pangolin releases 175,000 PNG tokens as rewards for liquidity providers. So, once the improvement proposal is adopted, monthly emissions will be reduced by 1000 every time. What’s more, the improvement proposal also proposes a whopping 30 million PNG token allocation to a foundation. This is about 13% of the new 230 million maximum supply.
As per the team, the fund will be used for the long-term sustainability of Pangolin’s network. Moreover, it will allow activities, including paying salaries to core team members, providing more incentive schemes for the Pangolin community, and more.
Since the launch of Pangolin V1 almost a year ago, Pangolin has facilitated over $8.7 billion in transaction volumes thanks to the potential of its community-driven approach and Automated Maker Maker (AMM) model within the Avalanche network. Furthermore, the team informs users that Pangolin V2 new upgrade will be a game-changer for crypto users looking to swap tokens on Avalanche.
Aside from this, V2 will also feature liquidity provider optimization, additional LP rewards, and a new UX. Besides, the liquidity provider optimization will allow liquidity providers (LPs) to earn more rewards based on the improvements made on Pangolin’s smart contracts.