Bonding curve shutdown

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.

About the community & the future ahead

The Swarm Foundation remains dedicated to fostering a transparent and inclusive governance process. As the Swarm network is entering a new chapter, let’s have a sneak peek at the key events awaiting in the future ahead:

Swarm Summit: in June 2024 in Ljubljana, Slovenia, the Swarm community will convene to celebrate Swarm 2.0. This event invites community members, developers, and thought leaders to contribute and engage in shaping the future of decentralised storage and web3 technologies.

Erasure coding: the integration of erasure coding marks a critical enhancement to Swarm network’s robustness as it significantly increases the resilience of the data stored. Erasure coding, an advanced form of error correction, ensures data integrity by enabling full data recovery even if parts of the data are lost or corrupted.

If that sounds exciting, join the Swarm community and start building the decentralised future you want to see, you can apply for a grant, you can check out open bounties, you can contribute through a SWIP, or run a node, or join the monthly Swarm Community Call.