Cookie DAO has announced an update to its staking rules that includes a 10% token burn, impacting reward strategies and market dynamics.
Changes in Staking Rules
Cookie DAO introduced new staking procedures that involve a 10% token burn for those locking COOKIE tokens in the Multi-Airdrop Farming (MAF) pool. "The introduction of these measures marks a shift in Cookie DAO’s reward strategy, emphasizing participation in Snaps over traditional staking rewards. The changes aim to increase token scarcity and drive ecosystem growth through enhanced tokenomics."
Market Impact and Token Price
The announcement resulted in COOKIE tokens experiencing an 18.14% price increase, now valued at $0.1866. This action aligns with efforts to enhance tokenomics, potentially increasing on-chain staking and reducing token circulation. Token buybacks and further burns are partially funded by 30% of B2B revenues within the ecosystem, fostering a deflationary trend.
Long-term Prospects and Liquidity Changes
Historically, token burning and increased staking incentives have temporarily boosted both price and participation, as seen in other DAO platforms. However, long-term positive effects remain dependent on sustained demand. Industry experts agree that such tokenomics adjustments can lead to shifts in liquidity and market interest, primarily affecting the COOKIE token and related assets in Snaps or MAF pools.
The changes to Cookie DAO's reward strategy, including the token burn, could significantly influence both short-term and long-term aspects of the market. The increase in token price may indicate interest in the new tokenomics model and support for the ecosystem.
