Yup Burning Mechanism

Add suggestions about how a YUP burning mechanic could work

9 Likes

The burn should be 10% of the total amount of $YUP sold. And another 10% distribute them among all the holds proportionally according to the length of time in the hold without modification (requirement: more than one month without modification in their account due to not having sold) and the amount of $YUP they have (requirement: more than 1,000 YUP)

Example:

  • sell 100 YUP → to ETH, -20% = 80 YUP sold
  • 10 YUP were burned and 10 YUP were distributed among accounts with more than a month without selling and with more than 1,000 YUP
9 Likes

why we need a burning mechanism?

I highly recommend creating more use cases for the token before we think about the burning mechanism.

The current token model of yup is only giving out free money without getting any value back for the project. We are giving away a ton of YUP for Creators and I don’t think even 10% of those provide any value to the Yup project. Curator rewards and LP rewards make sense because curators are the first people who use the protocol, the same goes for the liquidity providers.

A major overhaul is long overdue for the web app. Yup can not sustain just by giving rewards. We must innovate in the direction where users are FORCED to interact with the protocol and the web app. Currently, the web app has no use for a user who just wants to farm YUP tokens. For example, a person creates 10 accounts with 10 ETH addresses and keeps voting on a daily basis. That person DO NOT need to use a web app at all.

I repeatedly suggested making rewards CLAIMABLE instead of just putting them in people’s wallets. Every project designed to reward users has a claim mechanism that has a claim feature. I want PUSH the idea of bi-weekly rewards claim period for curator rewards.

To claim before that bi-weekly period, penulty should be there. This penulty goes to the treasury.

7 Likes

I totally agree. for me, burning is a short-term strategy to increase the token price to some extent. Yup has to encourage more use cases!!!

Harsh is correct. Currently, users do not interact with the YUP app itself. most of them just vote from external websites to gain the rewards (at least myself). Although users provide lots of curation data with their opinions, the data does not provide value now.

For tokenomics, can we refer to STEPN or some other gamefi economics?

4 Likes

I’m giving my 2 cents here:

On Polygon $YUP has a Total Supply of 22,001,819.99 tokens (at the moment of writing) PolygonScan

This is how those $YUP are mainly distributed:

This is the daily emission taken from yesterday 04/16/2022:


  1. Burning:
  • Swap Burning: When swapping $YUP for another token, not more than 3% should be burned. We want to take out from circulation some tokens we don’t want to discourage users to participate in the protocol.

  • Team Wallet: The team controls over 60% of the supply of the token. I highly believe the team should step forward and burn around 50% of their holdings; it might sound like a lot, but this would be healthy for the price and the protocol. YUP team will continue getting rewards everyday after all.

This would only solve the high emissions for a while, this does not solves the problem with the token losing value over time.

  1. Finding new use cases to the token (Not related to burning mechanism): As Harsh mentioned, users (curators) spend their time curating content online and they get rewarded with $YUP wich they keep for a time to build up their YupScore and after some time they just sell some $YUP from time to time. This only adds sell presure, since they get the token, keep it and sell it, rinse and repeat.
    For example, let’s look at the price of $SLP by Axie Infinity, the daily emission is too high when compared to the quantity that is burned, that’s why finding a new o several use cases for the token is needed ASAP.

The same would be true for creators, and I believe most of the creators don’t even know anything about YUP yet. Maybe lowering the rewards for creators for 6-12months would be good to fix the high emission of tokens, after this period of time there should be more creators aware of YUP and it would make sense to distribute the rewards as if was before.

  • Lowering rewards to the team from 22% to 15%: This means 7% that could go to burn or it could be distributed in different ways.
    3% to the DAO, 2% burned, 2% to treasury.

  • Swap Distribution (Not related to burning mechanism): 2%. 1% could go to the DAO and 1% to LP (this is additional to the 3% burned when swapping) or just the 2% to the DAO.

These are things very important to consider, and they could be modified to better fit the purpose of the project and users.

5 Likes

I like this idea. I think that this have been saying already, but maybe you should reduce the current rating balance to half or something. And if someone runs out of raiting, pay some Yup for more votes.

1 Like

As we are still in our early days of Yup, the team should not lower their share % because if they do so, people with huge bags of YUP will be in control.

I am highly in favor of reducing creator rewards. LP rewards are already lowered.

SLP has an infinite supply which YUP doesn’t. So, burning YUP when the project is still early for mainstream doesn’t make much sense. I am in favor of exploring every possible new use case and developing a more engaging web app.

Swap burn will not solve anything as of now. People will keep selling. For them, YUP is money out of thin air.

I said this previously, but instead of sending users daily, rewards let them claim their rewards bi-weekly. Let them interact with the app.

To remove mass voting, introduce YUP/vote. Free votes must be limited to 3 or 5 or 10 per day. After the free votes, users need to pay 0.1/0.01/0.001 YUP for every vote. And there MUST be an upper limit on the number of votes.
If the ratings are spammed, for an example Foundation rating, YUP/vote will increase and rewards for those ratings will be decreased. This will improve the quality of votes.

Collections should not be free either. I believe we can create a really good use case out of Collections for everyone in the Web3 space. I have a few ideas in my mind. Will be sharing them soon.
The number of items in one collection should be limited and priced accordingly. Limiting the number of items in the collections WILL make users think before they add them in it. Right now, in just a few clicks there can be hundreds of links spread in tens of collections. It looks spammy.
Think it this way, Twitter has word limit and it is totally makes user think before they write something. If there was no limit, what’s the point of it?

4 Likes

We’re now on phase 2, printing more than 90K $YUP a day, decreasing by 100 $YUP each day. After that, phase 3 will be printing 10K $YUP EVERYDAY. So tell me how is that not infinite supply?

Picture taken from the docs:

If the team decides to burn and keep burning some tokens, they’ll make it back again and regain control once again since they get daily rewards 10X or more than the top accounts that are getting around 1.7K $YUP / day.

Check this: Team has more than 14M $YUP, if they burn 50% they’ll still have more than 4X $YUP than the #2 Holder, Holder #3 is the DAO Wallet, #4 is the wallet that sends payments…

I will agree with you that we can lower the daily ratings, from 120, maybe to 40 / day. If a user wants more, then they will have to buy lets say 20 votes for 100$YUP and 40 votes for 150 $YUP, those $YUP would be burned.

Collections: You get the chance to create 3 free collections / month. You want more? 1 extra collection 50 $YUP, 5 collections 100 $YUP. You get the idea.

5 Likes

To earn more, the user must level up by paying in the native toke, YUP.

Something similar is happening in the Stepn project. Levelling up the shoes now costs GMT tokens. Which further increases earning potential.

7 Likes

interesting idea but how would this work though? You can’t build a burning mechanism into Quickswap and Uniswap.

This is effectively a burning mechanism no? I think that’s a very interesting idea or creating a lockup period to boost influence and potential rewards rather than only holding.

2 Likes

it is very interesting and good the interactions of hasch, psychology, san and reygct, all these ideas that you have expressed only have to be organized, discussed for their implementation and testing.

In the discord, the community “General Español” @EdgarScz said an excellent idea for a daily token burning, every 24 hours and that is, that when 24 hours pass from the rating restart, you have to pay a certain amount of yup, so you can reactivate and continue voting.

It is a good way to start giving use to the token, paying in yup, to continue curing on the web, but that is a good idea.

4 Likes

But if it is done in the liquidity contract, as long as it allows it

1 Like

In itself, I still have two proposals that can still be valid to give utility to $YUP:

4 Likes

I think these ideas by some yupsters will be great for yup token to add some extra value to the token .

If we make restrictions or rules like an account need to claim their curation rewards form the yup web page that harsh bro shared , and that yupster can claim his or her rewards only for 2 tmies in a month it will prevent an account from rush selling the token.

There should be only 40 votes for a yupster if he wants more votes he need to pay yup to purchase extra votes and the additional votes should be up to 60 that means 40 votes free and other 60 votes cost yup from his account and the yup should burn which a yupster paid to purchase extra rating .

Creating a lock up period will be killer I think . there should be some options for lock up period like for 1 months, for 3 moths and 6 months
Basis on lock up period and amount a yupster locked up he should be given some extra influence which will help him to get more rewards.

I think if we take this initiative immediately that can add some value to the token .

4 Likes

Returning to the idea of paying in yup for every 24 hours of ratings, I came up with the idea of how it could be the price to recharge, where the team could create another portfolio where they will go directly to the yup that will be purchased to get the ratings for each 1 day or 3 days is made the burning of the token. :fire: :fire: :fire:

All payments would be directly in yup debited from each user’s account automatically.

  • Less than 1K yup does not pay

  • 1K - 5k yup pays 5 $

  • 5k to 10k yup pays 10$

  • 10k to 50k pays 25$

  • More than 50k in yup pays 30$

5 Likes

I love it, thanks for sharing this idea

2 Likes

Excellent proposal, I hope the team will take it into account.

2 Likes

This is just awesome …I strongly agree with this model… If team execute something like this yup token will be on fire soon :fire:

1 Like