Token

Solana

Step Finance

DeFi

<h4><b>Step Finance, a key player in the Solana ecosystem, is marking its 3.5-year anniversary with a major announcement. </b></h4> 
<p>The platform has revealed plans to burn 192 million <a href="https://www.coingecko.com/en/coins/step-finance" target="_blank" rel="noopener">$STEP tokens</a>, currently valued at $8.7 million. <span style="font-weight: 400;">This isn’t Step’s first token burn. In June, Step Finance <a href="https://www.altcoinbuzz.io/cryptocurrency-news/step-finance-burns-12-5m-step-tokens/" target="_blank" rel="noopener">removed</a> 12.5 million $STEP tokens from circulation as part of a broader strategy to manage token supply. Now, they’re taking it further.</span></p> 
<h5><b>Where Are These Tokens Coming From?</b></h5> 
<p><span style="font-weight: 400;">The tokens being burned come from two sources: 150 million will be drawn from Step Finance’s unused community reserve, while 42 million have been bought back using the platform’s revenue. All of the revenue generated by Step is used to repurchase $STEP tokens from the market. Once bought, the tokens are burned, reducing the overall supply.</span></p> 
<p><span style="font-weight: 400;">The aim of this burn is simple: to increase the scarcity of $STEP and reduce its Fully Diluted Valuation (FDV). By removing a significant chunk of tokens, Step is positioning itself to support the long-term value of the asset.</span></p> 
<blockquote class="twitter-tweet"> 
 <p dir="ltr" lang="en"><img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f6a8.png" alt="🚨" class="wp-smiley" style="height: 1em; max-height: 1em;"> LATEST: <a href="https://twitter.com/StepFinance_?ref_src=twsrc%5Etfw">@StepFinance_</a> has burned 50M <a href="https://twitter.com/search?q=%24STEP&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$STEP</a> tokens (valued at $2.27M) as part of its ongoing campaign to burn 192M tokens (35% of the total supply). <a href="https://t.co/POa7lDU2ck">pic.twitter.com/POa7lDU2ck</a></p> 
 <p>— SolanaFloor (@SolanaFloor) <a href="https://twitter.com/SolanaFloor/status/1843286512617795718?ref_src=twsrc%5Etfw">October 7, 2024</a></p>
</blockquote> 
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p> 
<h5><b>A Phased Burn Process</b></h5> 
<p><span style="font-weight: 400;">The burn isn’t happening all at once. <a href="https://www.step.finance/" target="_blank" rel="noopener">Step Finance</a> has started with 50 million tokens, with more burns set to follow over the coming weeks. Once the full 192 million tokens are out of circulation, roughly 90% of all $STEP tokens will be in the hands of users. Interestingly, this is one of the highest circulation rates in the Solana ecosystem.</span></p> 
<blockquote class="twitter-tweet"> 
 <p dir="ltr" lang="en">At least half of the whole memecoin meta is them being fully distributed coins with no outrageous FDVs, VC involvement or upcoming token unlocks</p> 
 <p>Well, STEP is now 90% in circulation. Maybe the best FDV ratio for any active DeFi project today.</p> 
 <p>With absolutely zero VC… <a href="https://t.co/vCw0w9rMNY">https://t.co/vCw0w9rMNY</a></p> 
 <p>— Gary | Step Finance (@ceagleoneism) <a href="https://twitter.com/ceagleoneism/status/1843565866568560699?ref_src=twsrc%5Etfw">October 8, 2024</a></p>
</blockquote> 
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p> 
<h5><b>Why Token Burns Matter</b></h5> 
<p><span style="font-weight: 400;">Token burns are a common method used by blockchain projects to control supply and enhance value. By decreasing the number of tokens in circulation, Step is boosting the scarcity of $STEP tokens. This could potentially lead to a rise in demand and price over time.</span></p> 
<p><span style="font-weight: 400;">Furthermore, this move benefits both investors and users of the platform. Fewer tokens in circulation has some advantages. For example, it reduces inflationary pressures. This makes it less likely for token prices to drop. The result is often a more stable token price and greater confidence in the project.</span></p> 
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<h6><strong>Disclaimer</strong></h6> 
<p>The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted risk tolerance levels of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses you may incur due to any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. This post is sponsored by Creta World.</p> 
<p>Copyright Altcoin Buzz Pte Ltd.</p> 
<p>The post <a href="https://www.altcoinbuzz.io/cryptocurrency-news/step-finance-burns-50m-step-tokens/">Step Finance Burns 50M $STEP Tokens</a> appeared first on <a href="https://www.altcoinbuzz.io">Altcoin Buzz</a>.</p>

Step Finance Burns 50M $STEP Tokens

Altcoin Buzz

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