$CRYSTL Governance: Insights on Proposal 4
The $CRYSTL Governance snapshot is just around the corner, coming on November 28 at 2200 UTC! With that, it’s incredibly important that every member of our community prepares for the upcoming voting period by staying informed about each decision that could impact our beloved Crystl Finance platform. Every vote counts, and we truly encourage everyone to participate!
In this article series, we will dive into the reasoning behind each proposal, as well as distinguish the differences, benefits, and drawbacks between Option A and Option B in each proposal.
Proposal 4: Set 12.5M As The Maximum $CRYSTL Supply
- Option A: Once the $CRYSTL supply reaches 12.5M tokens, all emissions will end and $CRYSTL will be hard capped.
- Option B: Once the $CRYSTL supply reaches 12.5M tokens, emissions will proceed at 0.1 $CRYSTL per block.
With Crystl Finance maturing as a vibrant Vaulting platform, Proposal 4 will decide whether we want to implement a maximum supply hard cap for $CRYSTL or continue minting tokens.
Transitioning to being a Vault & Pool platform means that it is no longer necessary to continue printing $CRYSTL to run our protocol. Great news for $CRYSTL maximalists that have been accumulating $CRYSTL!
Option A would mean that going forward, every $CRYSTL becomes more valuable as a fraction of the maximum supply. The $CRYSTL token would transition from being a yield reward token and into a proper share of the Crystl Finance platform. In contrast, Option B would mean that our yield farms will continue printing $CRYSTL even after we reach 12.5M supply. This would allow our protocol to have a perpetual foothold in emissions which could potentially be used to boost strategically selected staking options or Vaults.
Crystl Finance Is Maturing
As you all know, Crystl Finance has so far been operating partially as a yield farm, incentivizing liquidity providers for the ApeSwap Polygon exchange with $CRYSTL token emissions on the Mines. This has, until now, been necessary to our business model. However, with Vaults on Cronos being a huge success, this marks a milestone for the maturity of our protocol. We no longer have to depend on $CRYSTL token emissions to continue to run our protocol successfully.
By turning off emissions when the 12.5M supply cap is reached, no more $CRYSTL will ever be introduced into circulation. This means that $CRYSTL can fully transition from being an inflationary asset to one that is deflationary and rare. At the same time, $CRYSTL will remain as a tool for generating a passive income with our proposed Vault revenue dividends, as well as our Pools to stake $CRYSTL and earn various tokens!
No More Sell Pressure From Mines
Currently, a majority of the sell pressure on the $CRYSTL token continues to be from the $CRYSTL rewards earned on the Mines. When $CRYSTL emissions stop, this perpetual sell pressure on $CRYSTL will end and our token will finally be free to have organic price appreciation as a limited asset class!
It is highly recommended that every community member revisits this article as the snapshot approaches on November 28 at 2200 UTC. Being well informed is how we can best come to a decision as a community. If you have any questions about any of the proposals, feel free to join our community to ask any questions on Telegram or Discord!