Why Afreum is burning 61% of AFREUM (AFR) Supply
When I wrote the Afreum Blackpaper (Whitepaper) in September 2020, the idea was to have a main ecosystem token AFREUM (AFR) that would be easily interchangeable with the flexible and stable country tokens. AFR would act as a reliable alternative to the stable "S" country tokens (as a potential hedge against currency fluctuations), and to the flexible "A" country tokens (as more speculative investment plays). AFR would also be the token that can be used by default across all ecosystem apps, the token that would list on CEXes, and the token that would anchor all our liquidity pools.
Due to its multifaceted role in the ecosystem it was important to get the total supply right. We settled on 20.5 Billion AFR, with the full knowledge that it would be on the high side. A future burn was always on the cards. Since the whitepaper went public on October 5, 2020, we have had time for the market to price AFR, and to guage the correct supply for the token.
Our initial allocation of AFR was as follows:
- 20% Private Sale
- 5% Advisors [Locked]
- 10% Founder [Locked]
- 10% Foundation [Locked]
- 20% Treasury [Locked Electively]
- 10% Afreum Game Engine [Locked]
- 15% Incentives [Locked Electively]
- 10% Incentives and Reserve [Locked Electively]
On May 31, 2022 we will burn 12.4 Billion AFR tokens, namely most of the original treasury, AGE, incentives, reserves，and remaining private sale allocations. Post-burn the total locked suppply of AFR will be 8 Billion AFR, a 61% decrease in supply.
THIS IS A BIG DEAL.
We believe this number better reflects the needs of the ecosystem, and strengthens the tokenomics of AFR considerably now and in the future as demand for AFR grows over time. It is also our goal to have the majority of all tokens in circulation, and burn will see 52% of AFR total supply in circulation. This is an exciting period for the Afreum project, as we have completed issuance for, and locked, all the tokens that form the basis of the ecosystem.
Moving forward we are working towards the launch of Afreum Pay, our payments system which will demonstrate the use case for all Afreum tokens. Afreum Pay will allow holders of any Afreum token to make payments anywhere Afreum Pay is accepted. This is the next-level use case we have all been waiting for, with significant implications for Afreum Cash, and Afreum Remit. As always, stay tuned!