Learn about the next steps Crystl.Finance is taking to improve the tokenomics of $CRYSTL and secure solid growth for the future 🛣 🚀
The Road So Far
Hey #CrystalCrew! It’s hard to believe that it’s been almost 3 and a half months since we launched our platform. Time really flies in DeFi! A lot has happened in these past few months including: our rebranding, multiple new features & partnerships, and releasing our auto-compounding Vaults! The growth has been exciting and exponential!
Many of you will recall that earlier in the project’s lifetime we made some changes to the initial tokenomic model of the $CRYSTL token to battle inflation and make $CRYSTL deflationary. The time has come for us to revisit this model to better align ourselves for the future. We will still hold fast to our promise of being a deflationary token, but it has come to our attention that our current emission model may not be the best for Crystl Finance.
The upcoming reduction which will occur at the 8.5M supply mark would reduce emissions from 1 $CRYSTL / block to 0.5 $CRYSTL / block. Considering it now, we are concerned that a 50% reduction at this stage would impact our ability to provide an attractive yield farming service with our Mines and Pools that reward $CRYSTL. Although we still see emission reduction as a good tactic to combat inflation, we believe a sharp 50% drop in emissions at present time would work against us.
That is why we have developed an updated Soft Cap model for $CRYSTL that will still get us to 0.1 $CRYSTL per block, but on a much softer path through a gradual reduction of the emissions. Additionally, we will also be reducing some of the non-essential Mine multipliers to increase the Rewards of our main $CRYSTL — $MATIC Mine and Auto/Manual $CRYSTL Pools.
Updated Soft Cap and Emissions Schedule
Firstly, the Soft Cap of $CRYSTL will be raised from 10M to 12.5M. Second, the emission model will be updated with new emission rules such that each reduction results in less of a drastic drop in emissions. This is being done to ensure that the APRs on our Pools and Mines won’t decrease sharply with each reduction. The updated emission schedule will be:
- 0.8 tokens per block if circulating supply is between 8.5M and 10M
- 0.6 tokens per block if circulating supply is between 10M and 11.25M
- 0.4 tokens per block if circulating supply is between 11.25M and 12M
- 0.2 tokens per block if circulating supply is between 12M and 12.5M
- 0.1 tokens per block if circulating supply is over 12.5M
We understand that raising the soft cap to 12.5M might also be raising some eyebrows — and that is why we want to alleviate your concerns and assure you that this change is being done entirely for the benefit of Crystl.Finance and $CRYSTL holders. At this time, our analysis shows that being an attractive yield farm with our Pools and Mines is a significant factor contributing to the success and health of our platform. As you know, a majority of $CRYSTL emissions are used to incentivize liquidity providers on our Mines. We worry that the existing model’s sharp emission drop at this time may injure our ability to build new partnerships and introduce new Mines and Pools. In other words, the biggest reason for why we are raising the Soft Cap to 12.5M and making the emissions more gradual is to ensure that APRs on the Mines stay attractive, and also leave enough $CRYSTL to be delegated for building #HighVibeAPR partnerships!
The new emission model will allow us more time to establish these new partnerships, as well as introduce enough Vaults with automatic buyback & burns for $CRYSTL to offset these extended emissions.
Additionally, we would like to announce that we will be implementing Crystl Governance in Q4 so that any future decisions regarding emissions will be solely up to voting by the Crystal Crew! We will also be looking into further significant ways to burn $CRYSTL besides Vaults to offset the raised Soft Cap.
Reduced Mine Multipliers
Reducing the multipliers on these non-essential Mines will help to increase the APRs on the main $CRYSTL -$MATIC Mine as well as on the Auto/Manual $CRYSTL Pool.
*These Mines will have their multipliers reduced on 10/16
We will be adding Vaults for many of these reduced Mines to ensure our users can still use them to gain High Vibe APY rewards.
The team will be holding multiple Community AMAs this week to answer all of your questions regarding this Soft Cap and Emissions update. We will also be releasing a Roadmap for Q4 with all of the new features we are bringing to the Crystal Crew! Exciting changes are coming, with our main focus on adding meaningful use-cases for $CRYSTL holders, introducing that governance system, and also bringing some new and innovative ways to remove $CRYSTL from circulation besides Vaults!
Finally, we would like to thank you all for being an amazing and supportive Crystl Community! We look forward to seeing you in our upcoming AMAs!