$yPLT Update— 100% Burnt, No Time-Lock. No pre-mined reserves.
An open letter to the community regarding this decision.
Dear PlutusSwap Community,
If you’ve read yesterday’s update (Click here for the report), we mentioned that we will be burning 4,920,420 yPLT and sending 4,920,420 yPLT to a Time-locked contract for 30 days. However, many of our community members on Telegram and Discord commented that we should be burning all 9,840,840 yPLT on the main wallet instead. We heard our community and after much consideration, the team came to a conclusion: To BURN ALL of the 9,840,840 yPLT in our main wallet.
As of today, 9th Oct 2020, the team does not hold any pre-mined yPLT. Initial yPLT contributed for liquidity (36,600 yPLT) are locked for 1 year on UniCrypt.
Proof of Burn and Liquidity Locked:
Firstly, we would like to explain why a Time-lock contract was initiated in the first place. As mentioned in previous articles/documents, the proposed Time-locked yPLT was supposed to be a community-governed fund whereby yPLT token holders get to decide on how we should allocate these tokens for future development and marketing purposes. Although PlutusSwap is currently just a farm for equitable distribution of yPLT to the community, we will be releasing our own AMM system in the future. In order to catch up with AMM pioneers such as UniSwap, Balancer and SushiSwap, PlutusSwap developers initially intended to allocate a sum of yPLT whereby the early community gets to decide on how PlutusSwap should incentivise more users to come onboard our ecosystem. However, we understand the community’s concern regarding projects holding reserves. The existing DeFi space is corrupted with projects trying to dump their tokens on investors and abandon the project. It is sad to see how terms like “rugpull, scams and pump & dump” are becoming a norm within the DeFi community. Although blockchain, in general, is supposed to be a “trustless” system, relationship between the community and project is still built on trust. Therefore, we decided to take the first step and commenced a 100% token burn instead of sending the pre-mined yPLT to a Time-lock. The truth is, regardless of time-lock or not, PlutusSwap is here to stay. Why would we want to risk all of our Plutus Capital clients since 2019 and the US$6m+ locked up on the Plutus lending app?
The main goal for PlutusSwap is to integrate an AMM system into the existing Plutus Capital lending app. The purpose of yPLT at its current stage is to promote equitable distribution to early adopters before AMM launch. It allows Plutus Capital to tap into a wider market as well. Recently, one of our community members asked a good question on Discord —
“How will the mission of decentralized banking be executed by a company from a country with a track record for authoritarian centralization?”
One of the amazing characteristics of Blockchain is that no regulatory body can interfere. Censorship resistance is key. One such example is Plutus Capital’s clientele from China. China’s regulatory bodies are known to be anti-cryptocurrency. However, despite the deterrence from the Chinese government, most of Plutus Capital users are from China. This is also why most of the Plutus Capital documents and infrastructures are adapted to Chinese users. Now with PlutusSwap, our ultimate goal is to tap into the worldwide #DeFi community!
You will probably be wondering next, if the team burn all pre-mined tokens, how can PlutusSwap development continue on the long run?
This is when liquidity mining comes into place. If you refer to our mining details, you will see that 95% of yPLT mined are rewarded to users on PlutusSwap and 5% goes to the development team. The team will only have access to this 5%. In other words, the team has to ensure the continuous growth of PlutusSwap.
For those of you who are wondering if PlutusSwap developers can mint any more yPLT even after burn, the answer is NO. We’ve transferred ownership to the master contract and NO ONE can mint any yPLT tokens. New tokens supplied into the market will purely come from Liquidity Mining ONLY, according to the mining schedule. Speaking about mining, a few more days left till 100yPLT/Block reduces to 10yPLT/Block. Which means there will be lesser yPLT generated on PlutusSwap. If you wish to accumulate more yPLT from farming, it is best to do so before Stage 1 begins.
Mining will be divided into 5 stages:
yPLT is mined every ethereum block (around ~ 20 seconds a block)
Below is the schedule of mining=>
Genesis Mining: 100 yPLT/block,total 50,000 blocks (Started on 7th October, 22:00 GMT +8)
Stage 1:10 yPLT/block,total 5,000,000 blocks(~1.9 years)
Stage 2:5 yPLT/block,total 5,000,000 blocks(~1.9 years)
Stage 3:2.5 yPLT/block,total 5,000,000 blocks(~1.9 years)
Stage 4:1.25 yPLT/block,total 5,000,000 blocks(~1.9 years)
Thank you everyone for your support and let’s look forward to greater things ahead!
With Love,
PlutusSwap Team
Who is behind yPLT?
Since 2015, we have been a diverse group of pragmatic individuals and idealists. We believe that the key to unlocking economic equality, prosperity and financial freedom lies in developing strong Fintech use-cases on cutting-edge Distributed Ledger Technology. Most importantly, we are neither a chef nor food. We aspire to bank the unbanked, bringing fundamental financial rights to billions of individuals across the globe. We want to unbank the banked, stripping away the financial prison that many in the first world are enslaved to.
We are the followers of the great Plutus.
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