May marks a significant milestone in the evolution of the Swarm network: as of May 4th, 12:00 PM UTC, the Swarm bonding curve has been shut down following a community vote held on Snapshot. This decision is an important milestone towards enhanced decentralisation and community-driven governance.
About the shutdown
Introduced three years ago, the bonding curve mechanism played a critical role in maintaining liquidity and setting a transparent pricing model for BZZ tokens. It functioned akin to an automated vending machine, seamlessly adjusting token supply and price based on offer and demand.
However, with the widespread distribution of BZZ tokens and evolving market dynamics, questions about the continued relevance of this mechanism surfaced. A community-wide dialogue ensued, culminating in a decisive vote. With a robust turnout, 87.07% voted in favour of deactivating the bonding curve, signalling a clear preference for a more traditional, market-based approach.
Impact on BZZ
The immediate effect of the shutdown is the cessation of new BZZ token minting. From this point forward, the total supply of BZZ tokens is fixed at 63,149,437.836550221. This change underscores our commitment to a stable and predictable token economy.
It is important to note that BZZ tokens retain their full functionality within the Swarm network. The utility and operational aspects of BZZ are unaffected by this change, ensuring no disruption to the ecosystem’s ongoing activities and development.