DeFi protocols have been disrupting traditional finance systems for over a decade now, with new innovations constantly emerging. One such innovation is the FireStorm mechanism, inspired by the Ethereum Improvement Proposal 1559, and introduced by Vulcan Blockchain as a solution to token supply management.
The Very First Vaporization Event will be the Biggest!
The Firestorm mechanism will vaporize the supply of $VUL coins from the FirePit. 90 days after Mainnet launches, Vulcan Blockchain will undergo the inaugural FireStorm event. This will be the most significant vaporization, because it is the first of its kind in the world’s first rebasing blockchain. The supply of $VUL within the FirePit after this first vaporization will be reduced down to 51%. Over the next 90 day period the $VUL within the FirePit will continue to rebase. The second FireStorm event and all subsequent events will reduce the FirePit supply down to zero! (instead of the original proposed 49%).
On launch there will be a $VUL coin allocation of 330 million inserted into the circulating supply. After all fees and sacrifices are taken into account, 271,962,573 million coins will likely find their way into the FirePit. The FirePit will be holding roughly 82.4% of the total supply of $VUL coins. This means that an estimated 31% of the total supply will be vaporized from existence during the very first FireStorm event.
Example: If the FirePit holds 271,962,573 coins, 133,261,661 will be vaporized from existence (49%), leaving a total 138,700,912 (51%) in the FirePit. This number would then keep rebasing.
What Happens During Future Vaporization Events?
For subsequent FireStorm events after the first inaugural event, the FirePit will be vaporized in its entirety (instead of the original proposed 49%). The FirePit grows based on the transaction volume on the Blockchain, with 60% of all transaction fees making their way to the FirePit for future vaporization.
Benefits of The FireStorm
- Scarcity and Value Appreciation: With a reduced total supply of $VUL, the available coins become more scarce. Scarcity often leads to increased demand, which can drive up the value of the $VUL coins over time. Investors and token holders may benefit from potential price appreciation.
- Deflationary Mechanism: Reducing the total supply of $VUL coins can create a deflationary environment within the protocol. As the supply decreases over time, assuming demand remains constant or increases, the value of the coins may rise. This deflationary mechanism can incentivize holding tokens for long-term investors.
- Enhanced Tokenomics: By reducing the total supply of $VUL this will improve the tokenomics of the protocol by aligning our specific coin utility. This alignment can create a more robust ecosystem, incentivize token holders to participate actively, and promote network engagement.
Token Supply Management Solution
The FireStorm mechanism is a promising solution to the issue of token supply management, which is a crucial aspect of cryptocurrency. The vaporization of $VUL coins from the supply is of paramount importance for Vulcan Blockchain. By reducing the total supply, Vulcan Blockchain aims to create scarcity and increase the value of its native coin. This strategy enhances investor confidence, and incentivizes long-term token holding. Moreover, vaporizing $VUL coins aligns with the protocol’s tokenomics, fostering a robust and sustainable ecosystem.
Overall, the vaporization of $VUL coins demonstrates Vulcan Blockchain’s commitment to creating a thriving and prosperous environment for its community, ensuring the long-term success and growth of the protocol.
In conclusion, we believe the FireStorm mechanism introduced by Vulcan Blockchain is a game-changer in the world of decentralized finance.