The post StarFi Protocol Activates FIS Burn Mechanism to Reduce Inflation appeared on BitcoinEthereumNews.com.

StarFi Protocol Activates FIS Burn Mechanism to Reduce Inflation StarFi Protocol, a crypto liquidity staking platform, has announced the activation of its FIS burn mechanism, according to a recent post on X (formerly Twitter). This mechanism is part of the project’s effort to control token inflation and enhance the overall value of FIS, its native token. As part of the mechanism, a specified amount of FIS tokens will be burned every 30 days, effectively reducing the circulating supply of the token. The StarFi team further disclosed that they are preparing a series of proposals aimed at increasing the $FIS burn amount and further reducing inflation, signaling their continued focus on enhancing the token’s long-term value. How the FIS Burn Mechanism Works The FIS burn mechanism is designed to reduce the circulating supply of FIS tokens by permanently removing a portion of tokens from circulation every month. Token burning is a deflationary process, meaning that by decreasing the total supply of tokens, the value of the remaining tokens is expected to increase over time, assuming demand remains constant or rises. According to StarFi Protocol’s post, the burn will occur every 30 days, and the amount of FIS to be burned will be determined by specific criteria within the platform’s ecosystem. This move is aimed at addressing token inflation, which can occur when too many tokens are in circulation, reducing the value of individual tokens. Efforts to Reduce Inflation and Boost Token Value In addition to activating the burn mechanism, the StarFi Protocol team is working on a series of proposals to further increase the $FIS burn amount and reduce inflation. These proposals will likely be put to a community vote, continuing the platform’s commitment to a decentralized governance model where token holders have a say in major decisions. By increasing the…

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Filed under: News - @ September 25, 2024 1:25 pm