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Loki project will burn around 700,000 tokens from Chainflip iquidity provision

By Rafał - 2020-11-20

Providing liquidity in the financial markets is a major element of optimal success during the launch of a project. Between centralized and decentralized exchanges, the choices for the provision of liquidity are vast and varied according to the needs. Between market makers and official provisioning solutions such as Uniswap for example, it is now quite easy to meet financing needs when you add to that a recurring reward for each block mined. However, as a project progresses, these needs are not necessarily as great as they started out and sometimes are one too many reserves.

Since the Salty Saga hardfork, Loki’s team made the decision to « save » 6 LOKI per block for the first six months following the hardfork as a fund to incentivise liquidity for Chainflip and wLOKI in the market. With the upcoming evolution/migration of Chainflip to its own blockchain, this funding is no longer necessary and has therefore been called into question to find a way to make a better utilization of it.

Upcoming Liquidity burn

Since it was added, Chainflip remained only in internal testing and this provision was meant to incentivise wLOKI liquidity on Uniswap platform. The first two rewards periods, for a total of 60,480 LOKI were used as a part of the wLOKI incentive program, which greatly helped the initial phase on Uniswap. As the team previously shared during this announcement

The decision to burn the Loki which was set aside for Chainflip liquidity makes the most sense for the project and is hugely positive news for the Loki community, given that a large amount of LOKI is now scheduled to be publicly burnt.

The exact burn event date will be announced by the team in the coming weeks but for now a total of 695,520 LOKI is already set to be burned. 

All information on Loki Liquidity provision and upcoming burn can be found at https://loki.network/