Controlling $BEANSTALK Supply
There's currently no hard cap on the supply of BEANSWAP token, making it an inflationary token.
Community members often point to this as a cause for concern, and while the founding farmer certainly understand the wish for a hard cap, there's a big reason we don't expect to set one in the near future:
BEANSWAP's primary function is to incentivize providing liquidity to the exchange. Without block rewards, there would be much less of an incentive to provide liquidity (LP fees etc. would remain).
So what are the other ways BEANSTALK's supply is limited, to counter inflation?
The foundling farmer aim to make deflation higher than emission by building deflationary mechanisms into BEANSWAP’s products. The goal is for more BEANSTALKS to leave circulation than the amount of BEANSTALK that's produced.
By reducing the amount of BEANSTALK made per block, we slow inflation. But we don't want to do this too frequently, too early, for the same reason we don't want a hard cap: we still need to incentivize people to provide liquidity.
- All farms take a 10% burn when you stake.
- 5% will be used to purchase BEANSTALK token.
- 5% will be used to further develop this platform with other sites
- Promote long term staking
- The 5% burn will be used to purchase BEANSTALK from the various liquidity pools.
- For example: If people staked BUSD-BNB LP, 5% of the LP tokens would be used to buy BEANSTALK from various BEANSTALK pools.
All burning fees (100%) will be used to purchase BEANSTALK and burnt.