- OpenSeason developers burn $350,000 worth of FU Money tokens originally meant for competition rewards
- Project plans to reduce total token supply by 82%, including team allocation reduction from 20% to 14%
- 909 players participated in 12-hour “Mega Jeet” competition before token burn announcement
- Team cites oversupply concerns and tokenomics restructuring as reasons for massive burn
- Final 35% token burn scheduled for June 2024 after unlock period
Ethereum-based battle royale game OpenSeason executed an unexpected token burn of $350,000 worth of FU Money (FU) tokens, initiating a planned reduction of 82% of the total supply. The move, announced after a 12-hour gaming competition, marks a significant shift in the project’s tokenomics strategy.
Competition Twist Sparks Community Reaction
The Mega Jeet competition, which attracted 909 players on the Epic Games Store platform, initially promised substantial token rewards. Instead, developers Fractional Uprising Studios burned 2.67% of the total token supply, initially attributing it to an intern’s error.
Strategic Token Reduction
The development team outlined their burn schedule:
- 47% supply reduction planned for next week
- 35% additional burn scheduled for June 2024
- Team allocation decrease from 20% to 14%
Pseudonymous co-founder Krypticrooks told Decrypt: “It was intended to show the insanity of gamers with expectations for free money, to show the broken emissions structure.”
NFT Integration and Community Response
As compensation, participants will receive a “Shitty Bean” NFT. The game features integrated NFT collections, including Bored Ape Yacht Club and Milady Maker, which the team believes will maintain community engagement despite the controversial token burn.
Market Impact Analysis
The reduction in supply aims to address what developers identified as “supply overhang,” potentially making the FU token more attractive to investors. The absence of venture capital involvement allowed for this aggressive tokenomics restructuring, according to project leadership.
Krypticrooks stated: “After this burn, we will have given out almost 50% of the tokens from the airdrop. Those who bought before the burn will be greatly rewarded.”
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