Hello everyone. At the beginning of January, I published a report regarding the Cent Project. In the predictions section of the report, I announced that the Cent token buyback operations will begin this year. I also mentioned that inflation will be reduced as much as possible. We have started working on this issue.
5,760 Cents are produced daily in the reward pool. We have set up a setting to produce 4 tokens per minute to ensure that the distribution continues uninterrupted. In some periods, users stake more Cents. This is not a problem since the distribution is spread over more users. However, during periods such as bear seasons, the number of users who stake and curate the token decreases.
There is a certain amount of liquidity that we aim to reach in Cent's liquidity pools. For this reason, we keep the current APR quite high by adding more rewards in some liquidity pools. We also now set the reward distribution periods as long as possible. For the reasons I mentioned above, sometimes we cannot reach the liquidity amount we expect in a short time. Therefore, the current APR in some liquidity pools may remain at very high levels.
We have taken some measures to reduce inflation in the token distributions in the reward pool and liquidity pools. We have also decided to use these measures for the Cent buyback.
- Three million Cents were staked in the @centtoken account. We will ensure that more Cents are burned by voting for the reward burning posts shared by @centtoken. We will stake the incoming rewards regularly. Thus, the inflation in the reward pool will be gradually reduced. At the same time, we will gradually reduce the APR amount in the distribution without changing the number of tokens produced in the reward pool.
- We will temporarily add and remove liquidity to liquidity pools with extremely high LP reward APR using the @centtoken account. In this way, we will prevent excessive reward distribution and prevent more Cent distribution. For example; as of today, we have added some liquidity to the liquidity pools in the image below.
No liquidity will be added to the liquidity pools where the rewards of the Trade Token Study and the Tribe Token Study are distributed - regardless of the LP reward distribution APR - and no profit will be made. Cent tokens earned from voting and as LP rewards will be staked or re-added to liquidity pools. We will place buyback orders in the Hive/Cent market with other token income from liquidity pools. If you have any questions, feel free to ask. See you in new posts. Stay tuned.