Extinguishing the SpiritSwap Burn!

For a brief time, SpiritSwap has been using a burn contract that has been utilizing earned liquidity pool (LP) fees to buy back and ‘burn’ SPIRIT tokens. There has been praise from the community for doing so, however there are always two sides to any situation. Internally, SpiritSwap has been growing its team on all fronts. We have been hiring top talent in order to provide the community with the best product possible. This brings along increased expenses, which is currently funded by SPIRIT tokens. SPIRIT tokens as the sole form of revenue is not ideal, and we are looking for a better way to fund our payroll/other internal costs.

TL;DR — We will be redirecting LP earned through swap fees back to the dev wallet instead of using them for the buy back and burn mechanism. This will allow the team to use LP fees to fund development before needing to use SPIRIT tokens, which is hugely beneficial to reducing sell pressure on the SPIRIT token. Funding the project is important for longevity, and we would like to do so without applying sell pressure to SPIRIT.

In the current situation, the sole revenue stream SpiritSwap has is SPIRIT emissions, thus forcing the team to use SPIRIT every time capital is needed. This essentially counteracts the burn feature by creating sell pressure on the token when fundraising is needed. A more effective way to raise this capital without having to use SPIRIT tokens would be through the earning and sale of LP fees earned.

*Important to note, once inSPIRIT is implemented, swap fees will be going to inSPIRIT holders. As more features are built and the protocol is upgraded, new revenue sources will be introduced to further fund the DAO.

To some users, turning off the burn may seem like a negative event, however in the long run we can assure you it will be the best decision for the project. This will allow us to use current revenue to improve fundamentals rather than technicals and it will help us build out strong features and upgrades for SpiritSwap.

Thanks for believing in the SpiritSwap team and our ability to make this a game changing protocol on Fantom. This is going to be a crucial element to making this project stay around for a long time. Thank you all for your support.

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Medium: spiritswap.medium.com
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Merch: spiritswap.store