UPDATE: As of May 2023 the PILOT burn program has completed. Overall, we burned 78% of supply (15.6m tokens), leaving a max supply of <4.4m tokens.
We have said this many times before and here it goes again, at Unipilot we believe in a community first approach.
Lately, there has been a lot of debate in the community about the relatively high fully diluted market cap of $PILOT. We listened to the community and we are opening up a proposal for a $PILOT quarterly burn program.
Background— an overview
It’s been three months since the launch of the token, we initially supplied 600,000 or 3% of the supply to the Uniswap liquidity pool.
Around a week ago, $PILOT jumped in price a lot causing most of the $PILOT in liquidity to be consumed. We added an additional 200,000 or 1% of the supply to the Uniswap liquidity pool after hosting a proposal on discord.
Note: All of the fees generated on the liquidity gets redirected to the index fund which further supports our token.
Token lock schedule:
At TGE, around 7.5% of supply was unlocked and the rest of the tokens are locked in vesting contracts.
With three months passed, the total unlocked tokens stand at 20%, though only 4.7% of supply is in circulation. 92% of it is from the liquidity pool on Uniswap and the $PILOT LM Program.
This shows that we are releasing the tokens in a really controlled manner for the growth of the protocol.
The Pilot Quarterly Burn Program
We agree that there is a large gap between the amount of circulating tokens and the total supply, which can be daunting to new users joining the community.
The $PILOT Quarterly Burn Program aims to burn most of the supply and close that gap. We plan on doing this by burning a specific supply of $PILOT every quarter. Although we wanted to burn more, right now only 12% of supply is unlocked from the vesting contracts that we can access.
Initially, 12% of the supply will be burned. Following that, every quarter for the next three years, 88% of the previous burn amount will be burned, meaning a total of 78% of the total supply will be burned over three years.
Note: The team has also volunteered to be a part of this program and burn their tokens in accordance with this. Therefore, 78% of team supply will be burned over the next three years.