The Pilot Burn Proposal
UPDATE: On 12 January 2023, we accelerated the progress of the program by burning 2m PILOT tokens which were already unlocked.
TLDR: As of 12 January 2023, we have burned 63% of the original 20m supply, and will continue until 78% is burned, leaving only 4.4m tokens. Additional burns in the future are likely, bringing total supply below 4.4m.
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.