ApeSwap drafts out plans to tackle BANANA token inflation; ApeSwap has urged users not to expect immediate impacts.
ApeSwap Announce Plans To Tackle Inflation
In a bid to address the current inflation of its $BANANA token, ApeSwap has outlined some strategies. The multi-chain Decentralized Exchange (DEX) protocol announced its plan to tackle inflation on July 1st via Twitter. However, the DEX protocol has warned that these strategies may not yield quick results as it is impossible to implement each of them instantly.
Inflation generally is a natural occurrence, and its presence in ApeSwap’s DEX is unsurprising. In this light, the Decentralized Finance (DeFi) protocol looks at ways to shield its DEX, yield farms, and its native BANANA token for users.
Tackling BANANA Inflation: ApeSwap Explains Strategies
According to its official Medium post, ApeSwap disclosed its different features and upcoming approach that will be used to increase its burn rate, clawback its circulating token, and tackle inflation:
DEX Fees (Polygon + Binance Smart Chain)
ApeSwap has increased the amount of trading fees obtained from deploying the Polygon network on its DEX. This is done to use part of the trading fees, including the one obtained from the BSC network, to re-purchase and burn BANANA tokens.
Auto-Burn Vaults
This is another strategy by ApeSwap to battle inflation. The protocol will use its vaults to buy back and burn tokens. Unlike most protocols that use vaults to implement some fees for transactions, ApeSwap’s vaults will have no business generating revenue. The fees in its vaults will be strictly for BANANA tokenomics.
Continuous Initial Ape Offerings (IAOs)
This will be done to increase the tokenomic benefits obtained from Initial Ape Offerings (IAO). ApeSwap plans to run Initial Ape Offerings regularly to help claw back existing BANANA out of circulation. The protocol intends to hold IAOs twice a month or less.
Initial ApeZone Offerings (IAZOs)
Many projects have looked to launch on ApeSwap due to the successful IAOs. Unfortunately, the DEX protocol was not able to meet the demands of these projects. To tackle this issue, ApeSwap will create a self-serve launchpad for every BSC-related project called “Initial ApeZone Offerings.”
How does this tackle inflation? Each IAZO will mandate projects to provide ApeSwap with a fraction of the funds raised, which will be used for buyback and burns.
About ApeSwap
ApeSwap is a multi-purpose decentralized protocol leveraged by investors and users for yield farming and staking. The platform is built on the Binance Smart Chain and has been forked from PancakeSwap.
Closing Thoughts
ApeSwap dropped details about its upcoming strategies to calm its users amidst their ongoing fears. The plans suggest that the protocol is working hard to tackle inflation and has urged users to keep holding BANANA and using its protocol. While the strategies will yield results, ApeSwap has urged users to understand that they will take time to become effective.
Source : bsc.news
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