Celsius Weekly CEL Token Burn
Celsius Network does a weekly CEL token burn every Friday!
Announced on the October 1st, 2021 AMA, Celsius Network will be doing a weekly CEL token burn every single Friday. This makes the CEL token a deflationary token with utility. The amount of CEL tokens burned depends on the weekly earnings, and is therefore variable.
Currently, the amount of CEL tokens to be burned is equal to 10% of the total weekly earnings. This is an additional 10% on top of what is already paid out in the form of community rewards. Therefore 110% will be purchased off the open market every week and burned (or permanently destroyed).
Please note that the CEL tokens burned will not come from the Celsius Treasury. We believe that the burned CEL tokens can come from the OTC desk which includes large sums of CEL tokens currently owned by large investors, stakeholders, employees and other unlocked tokens.
Note that it is not uncommon for cryptocurrency companies and networks to burn their own token. The reason for burning tokens is different for each specific company and we unsure why Celsius Network has decided to burn CEL tokens weekly. However, it should place upward price pressure on the CEL token market price from now on.
So in actual fact, if:
Celsius Network assets under management (AUM) keeps increasing via:
- increase in active users
- increase in partnerships & institutions
- increase deposits (net transfers)
- more users opting to earn in-CEL and/or
- more assets supported by Celsius
Celsius Network weekly reward payouts keeps increasing via:
- increase in amount lent out to institutions and organizations
- more lucrative and increase in DeFi strategies
- BTC mining through renewable resources and/or
- other new revenue streams
There will also be an increase in the amount of CEL tokens burned each week (dependent on CEL token price, of course).
Since the total amount of CEL tokens is fixed, then as time passes, the deflationary rate will only increase.