SNP Burning Plan
The end of the year is the perfect time to sum up what’s been going on, what we’ve accomplished and where it puts us in the market. First of all, we would like to thank the impressive 500 000+ community members that we gained in such a short period of time. We are expanding our products and services and helping more and more projects on the market realize their potential.
Since our launch, promoting the market to new heights of quality has been one of our goals, and to see it begin to take effect is a great point of pride for everyone in the team. Those accomplishments were only possible thanks to all the people that came to our community, as well as the amazing teams we helped with their projects.
Apart from our cross-chain launchpad, which is known to every member of our community, we managed to launch many other brands such as Synapse Ventures and Synapse Technology Labs.
Through Synapse Ventures, we have been able to support many interesting projects since their earliest phases of development and in the future, we are looking to get a significant return on our investment thanks to the quality of those projects.
Synapse Technology Labs on the other hand has helped dozens of projects in various stages of development and allowed them to focus on developing the core of their business while taking care of logistics and marketing.
We are currently in the process of developing a new website that will showcase each project we have worked with — how we have been able to assist them and their feedback on the Synapse Network. In the coming weeks, we will be featuring more articles describing each of those companies and what their aim is.
The success of Synapse Network is the success of all our investors and community members who believed in our project and who joined us in our journey. Thanks to the active efforts of Synapse Venture Capital, Technology Labs and Advisory Services, Synapse Network has successfully secured part of the fundings for the new upcoming phases of operation.
What does this mean for investors? First of all, assured long-term security for every investor and our community is just the beginning. Due to the fact that we already have secured funding, we decided to burn most of Synapse Network’s tokens. Yes… you read that right, most of the 500,000,000 total supply. To be exact, 60% of all SNP tokens, so that there will eventually be 200,000,000 tokens left of which a large portion is already released on the market.
Which tokens will we burn?
- All Research Tokens 125,000,000 SNP
- All Reserve Tokens 65,000,000 SNP
- Most Team Tokens 40,000,000 SNP
- Half Advisory Tokens 15,000,000 SNP
- Most Exchanges Tokens 20,000,000 SNP
- Most Marketing Tokens 35,000,000 SNP
It is important to realize that this is not just a scaling down of tokenomics, but a significant change in the structure itself in favour of investors, so that the percentage of owned tokens and tokens on the market becomes a much higher percentage of the token's total.
What does this mean for the investor?
This manoeuvre adds a whole range of benefits that guarantee long-term project success and increase the safety of our community.
1) More than half of the tokens have already been sold and are under the control of investors. Most projects only sell 15–25% of the tokens, the rest stay under project control. This is not the case with Synapse.
2) The share of staking rewards in total supply has increased from 6% to 15% of the total supply.
3) The share of liquidity supply rewards has increased from 6% to 15% of the total supply.
4) Synapse Network as an organization in its control has only 6.5% of total supply allocated to marketing and 2.5% allocated to exchanges (for example, to provide liquidity on Dexes or to be ready for listing on major CEXes)
Why not split 60% of burned tokens into a cyclic token burn like some other projects?
Because we don’t want to make it a pure marketing event and we want to send a clear message to the community that the side activities that Synapse Network is doing are of great benefit to the project itself and Synapse Network is not going to sell its tokens on the market to raise additional funds as these are unnecessary.
SNP as Deflationary token
Burning 60% of the total supply of tokens is just the beginning of the burning process. This is because we are looking forward to changing the settings of our tokens by making the following adjustments:
- 5% of total fee on transfer, which consists of the following:
- 3% tokens are burned
- 1% are for extra rewards diamond hands
- 1% is to create extra liquidity on DEX.
At the moment we are looking towards a period of deep uncertainty in the markets, the fear and greed ratio indicates significant unrest, therefore lowering the trading volume of the SNP token quite a bit.
Averaging the trading volume from the high activity days and the more stable period, a typical value on a daily trading volume of $500,000 equals 44 million tokens per month.
At a 3 percent burning rate, this translates to a burning rate of 1.3 million tokens per month. This means burning 0.65% of the total supply in the first month alone.
It’s worth bearing in mind that this is a compound percentage, so burning the same number of tokens in the following months will already result in a higher percentage of the burning of all tokens.
Synapse Network’s success is an investor’s success
However, this is not the end of the good news. As we have already mentioned, thanks to the creation of new entities, we obtained profits that allowed us to secure financing for further periods of development.
In addition to the added financial security for future investments, with each subsequent month, we are obtaining additional funds that will be allocated to the purchase of tokens from the market starting from now.
Purchased tokens will be subject to burning, which will further affect the deflation of the token and will decrease the total supply of SNP tokens.
Investor safety is our key focus
As we have said many times before, our primary goal is investor safety. Every action we take is aimed at increasing safety. An example of such actions is the staking pools in which Synapse Network has no possibility to interfere.
Staking is permanently closed and unlike many projects, Synapse Network cannot withdraw any person’s funds. Despite the fact that we are security experts in wide areas of software design and development we analyze and curb every possible risk.
Every software could have vulnerabilities — even if the ones we made are state of the art technology, then maybe the libraries that we are using or cloud platform provider could be subjected to security breaches.
That’s why our smart contracts are prepared in such a way that even if the Synapse infrastructure is hacked, there is no possible threat to the investors and their tokens.
We are constantly analyzing the market, trends and what is happening in our expanded ecosystem while also taking a lot of time to analyze available technologies and their possible vulnerabilities.
There were over $1.5 billion in hacks in the DeFi protocols in 2021 alone, you can read more about the biggest hacks in this article:
https://coinmarketcap.com/alexandria/article/these-were-the-worst-hacks-of-2021-so-far
Due to the increasing number of hacks in the blockchain area concentrated specifically in the archetype of DeFi protocols we decided to postpone the further development of our cross-chain DEX until we are sure about the security of our solution.
Next steps and plans
In the near future, we are looking towards the release of long awaited changes, such as rewarding our veterans as well as people that are especially crucial to our support in social activities.
As always,stay tuned to our announcement and media channels to never miss one of the many upcoming updates.
The burning itself will be performed when the crypto market recovers to achieve a better market response.
Summary
We are aware of the peculiarity of this particular update, since such huge token burns are rarely if ever seen in the crypto ecosystem. This is in part due to the fact that usually projects want more control over the price action of their tokens, while also giving more leeway for profit to individual team members.
We at Synapse, have instead always looked towards the betterment of the Crypto ecosystem as a whole, wanting to lead by example to reach new heights of security, stability, quality and freedom in the DeFi eco-sphere.
We have made great progress toward this goal in the past year, and we are ready to once again prove our point by giving investors and users more control and security over our platform, in the most transparent and clear way possible.
This token burn process will not only showcase the qualities of Synapse, but will also grant real tangible benefits to the more involved members of our community
As always, we are amazed by looking at what we have created together, and we want to give back to our supporters as much as they gave us. We look forward to another amazing year, and many more improvements brought to everyone from the Synapse Network.
About Synapse Network
Synapse Network is developing a cross-chain investment and start-up acceleration ecosystem based on blockchain technology to give everybody an equal chance to contribute to great upcoming projects and to do so early on. We are bridging the gap between the traditional & crypto market. The idea of the Synapse Network technology goes beyond the standard offer of launchpads available on the market, becoming a true technological brand providing tech solutions.
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