In summary
- OpenSeason burned $350,000 in FU tokens following a competition, eliminating 2.67% of the total supply and plans to burn 82% in total.
- The “big burn” will drastically reduce the team’s control over the tokens and seeks to make the FU token more attractive as an investment.
- The developers, without fear of losing the community, will replace the burned airdrop with NFTs as an apology and will continue to integrate popular memes and NFTs.
Fortnite-like battle royale-style shooter OpenSeason hosted a 12-hour competition promising players a share of tokens worth $350,000. But instead of distributing those Ethereum-based tokens, the developers burned them, and will burn many more in the future.
At the end of the token purge, 82% of the total supply of the FU Money (FU) token will have been burned, developer Fractional Uprising Studios told Decrypt. The team says this is a measure to help maintain the health of the token… and have a little fun while doing it.
Last week, the creators of OpenSeason announced the Mega Jeet competition – “jeet” being crypto slang for someone who sells quickly after obtaining a token. For 12 hours over the weekend, a total of 909 players dug into the Ethereum-based survival shooter, which can be played on PC via the Epic Games store, hoping to get a healthy share of the airdrop six figures.
Instead, the team burned the tokens, equivalent to 2.67% of the total supply, initially labeling it as a mistake made by an intern. But it was just the tip of the iceberg in what is planned to be a dramatic cut in the supply of FU tokens.
“It was intended to show the madness of players with expectations of free money, to show the flawed issuance structure,” pseudonymous co-founder Krypticrooks told Decrypt.
In turn, chaos broke out on the project’s Discord, which the co-founder called “pretty funny.” It’s difficult to distinguish what is satire and what is not here, however, especially for a project that built its 3D shooter around Cryptocurrency memes, including OpenSea after a dispute with prominent NFT marketplace.
Many users on the Discord called the team scammers after the token burning was revealed, while another said, probably sarcastically, that he was crying after thinking his family was rich. One player said he hoped to upgrade his PC with the airdrop profits, but after the burn he claimed he “never expected anything.”
But that kind of reaction was both expected and desired, the developers told Decrypt. A “Shitty Bean” NFT will instead be sent to competing players as part of the apology, but the team is “absolutely” afraid of losing community members as a result of the prank.
“We have real communities behind us that will join the tribalism for our project of all the competing NFTs, etc.,” Krypticrooks said, pointing to NFT projects that are integrated into the game, such as Bored Ape Yacht Club and Milady Maker .
Now the “big burn” is about to begin, with 82% of the total token supply being removed from circulation, including 2.67% burned in the Mega Jeet competition. This action will also see the team’s token supply reduced from 20% to 14%, and tokens allocated to “future productions” and “rewards” will be burned.
What’s the point? The team realized that they had allocated too many tokens to the team and funding future projects. He believes this “oversupply” made the FU token unattractive as an investment. After the burn, the core team’s control of the token supply will have been drastically reduced, which they believe will make it easier to hold the token.
“Basically, now there is no one left to sell. The jeets have been expelled, and those who bought before the burning will be greatly rewarded.” explained Krypticrooks, “After this burn, we will have given out almost 50% of the airdrop tokens. “That’s crazy.”
The “big burn” is scheduled to begin this week, with 47% of the supply planned to be removed by next week. The team must then wait until June for the final 35% of supply to be unlocked, before being thrown straight into the fire.
“We’re lucky to do this because (we) never take on venture capital investors,” Krypticrooks concluded. We are burning money that gives us independence!
Edited by Andrew Hayward
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