Burning FSN/FUSE liquidity
Since April 7, I’ve had a dilemma I wasn’t sure on how to best handle, but I now think I’ve come up with a solution that’s fair, good and honorable.
The dilemma is that in a contest I freely gave away 0,05 FUSE, which is no insignificant amount of money and to be honest I was a bit afraid it would just get dumped.
Luckily the winner was a highly engaged Fusionite (however, he also somehow failed to actually claim the FUSE and was super happy about getting 500 FSN which was the much smaller part of the price).
I initially reminded him to also claim the FUSE both on Twitter and in Telegram, but since it didn’t happen I decided to let it slide for the time being and start thinking about how that FUSE could somehow serve a greater purpose.
Claiming it back as my own again was always out of the question, but was there a way it could serve a greater cause for all FUSE holders?
Yesterday, I came up with a very interesting idea that I felt I really had to do here. “Why not put it into liquidity and burn it?” Just burning something currently valued at 7000 USD might seem a little crazy, but I really think this is really worthwhile, and the reason is that it means FUSE could never be entirely rug-pulled. Right now I am pretty much personally putting up all the liquidity for FUSE and if I someday for some reason decided this thing isn’t really worth anything, it’d instantly become nearly worthless. But by burning some of the liquidity I can never make that decision, at least not fully! The burnt LP tokens will always be there to provide some liquidity on the Fusion version of AnySwap.
I see this as particularly important now that Chainge DEX is about to launch. Because what do I do with my personal FSN/FUSE liquidity at this point? Do I keep it on AnySwap or do I move it to Chainge? Will an offer exist where the liquidity could yield at that point CHNG? I don’t know the answers to those questions now, but no doubt they will influence my decision making, so that I get as much yield from the liquidity as I possibly can. But the LP tokens that are burnt, I no longer have power over. That liquidity will therefore always remain in the AnySwap contract, and therefore the possibility to trade FSN and FUSE on AnySwap becomes immortal.
For this reason I find the aspect of burning liquidity tokens a really amazing concept and much more meaningful than the burning/destruction of regular tokens. In a later post I will likely write a little about the project that inspired this idea, and what they did (which makes my small sacrifice here pale in comparison).
But for now, let’s focus on this burn: