Serum “Burns” $1 Million of Tokens, SRM at New 2021 Highs above $12
Serum—one of the world’s actively used DEX on the Solana blockchain preferred because of its low transaction costs and speed–concurrently burned and dropped to stakers a combined $1.3 million of SRM, an update on May 3 reads.
Serum DEX Burns
Specifically, the DEX destroyed 84,538 SRM—or $1.03 million—, dropping 21,134 SRM—or $257k—to stakers.
In total, there are 10 billion SRM tokens.
The first SRM burn was in Sep 2020 where $400k of SRM was destroyed in line with the project’s schedule. This represented 100 percent of Serum’s revenue.
There was another burn in late April 2021 where $600k of SRM was burnt and dropped to stakers.
Only 50 million SRM tokens are currently in circulation.
Still, the team is keen on keeping circulation low to improve the scarcity of the SRM token through continuous coin burns.
According to the DEX project, 80 percent of trading fees will be used as part of a buy-back program and burning. The remainder, 20 percent, caters to DEX hosting expenses.
Efforts to Increase SRM’s Scarcity
Over time, the number of tokens burnt will grow linearly, depending on adoption levels.
The project’s creators predict to eventually attract a billion users and command over $1 trillion of assets in years to come.
At those levels, SRM’s scarcity will increase as its demand increases. SRM acts as a utility and governance token. As a result, users who pay fees using SRM receive a discount.
In addition to burning, node operators can also lock up or stake their SRM tokens.
All these efforts contribute to SRM’s scarcity, boosting prices in the long haul.
SRM Charts to New 2021 Highs
As of writing on May 3, the SRM price is trading at new 2021 highs, changing hands at $12, according to trackers.
SRM’s expansion is boosted by the increasing number of intuitive user interfaces like Bonfida and Raydium, offering more accessible access to the DEX’s trading books.
Its valuation is rising in tandem with Solana. SOL is charting new 2021 highs boosted by adoption and migration to cheaper, high-throughput smart contracting platforms.
As BTCManager reported, Serum launched its first AMM in Oct 2020.