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A native community of the DeFi protocol, Bancor, presented a proposal seeking to execute 1 million BNT Burn once collected by the Bancor Vortex in the v3 vault.

The burn is as a trial to impact the token’s price positively.

DAO members have cited the fact that;

“burns” have a psychological effect on market participants and the same can happen if such an experiment is allowed to be carried out. For this reason, this proposal is seeking a one-time burn of 1m BNT when this amount has accumulated in the Bancor v3 vault.”

If the proposal is approved and the community sees a positive impact on the token’s price, future proposals can be triggered to specify new BNT burn amounts.

At the time of report, over 99% have voted in support of BNT burning, and the community still has until September 28th to cast their votes.

The latest development is coming months after the protocol launched Bancor v3 on the mainnet.

In the previous version, Bancor Vortex accumulated fees in different tokens and swapped them for BNT, which was then used to purchase and burn vBNT, thereby reducing the circulating supply of the native asset.

By Meekness Nnoka

Blockchain Analyst & Writer with top-notch Technological background. Enjoys reading and writing fascinating crypto contents. 4 years content creating experience.

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