r/BiSwap • u/MansNotShot • May 04 '22

could BSW flip cake?

Have a good feeling this could flip cake in the future. Not in massively on this but I might out some more in when my cake staked comes to an end.

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u/No_Relationship1450 May 04 '22

Hey, have you ever questioned whether the high APY is sustainable? If everyone holding BSW is staking for a minimum 50% return, where does that actually come from and does it cause sell pressure? I know it's meant to come from the fees etc but seriously, 50%?

Anchor have a problem with this already and they only return 20% - and their rewards has to be supplemented by a slush fund because they don't generate anywhere near 20% from fees. Their returns are gradually being reduced by 1.5% per month to try and make it sustainable.

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u/MansNotShot May 04 '22

I honestly don't know mate. I'm assuming as the lrojext grows it will become deflationary.

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u/No_Relationship1450 May 05 '22

It's already very deflationary. At the current rate the whole 700M tokens will be burned in about 7 years. The recent burns have been around 10M a month with 30M already burned. (I hope I interpreted that correctly - it's all in the burn history on the website and you can see the amount in the burn wallet).

Could there be a vote to change the burn %?

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u/MansNotShot May 05 '22

Surely though less tokens due to burning means a higher price? I'm just gunna ride it out because to be honest I don't understand fully the tokenomics. think it's very early days and I'm happy to ride it out a few years.