WOO permanently burns 15% of the supply: a restructuring of tokenomics

2026-01-05 14:30:49

WOOFi has just initiated a major proposal vote—permanently burning 300 million WOO tokens. This is not just a burning event but a complete reshaping of the project’s token economics. The voting started at 21:30 UTC on January 5th and will last for 7 days. If approved, WOO will fully resolve the issue of token dilution.

Core Content of the Burn Proposal

specific numbers and changes

This burn involves 300 million WOO tokens, approximately 15% of the current supply. According to the latest data, WOO’s total supply is 2,190,258,104 tokens, with a circulating supply of 1,890,258,104 tokens. After the burn, the circulating supply will reach 100% of the Fully Diluted Valuation (FDV), meaning no new tokens will be issued in the future, eliminating dilution risks.

Comparison before and after the burn:

Metric	Before Burn	After Burn
Total Supply	2,190,258,104	1,890,258,104
Circulating Supply	1,890,258,104	1,890,258,104
Circulation Ratio	85.72%	100%
Future Dilution Risk	Exists	Eliminated

Voting and Governance Mechanism

Voting rights are allocated based on staked experience points (XP) obtained through WOO staking, reflecting the principles of decentralized governance—users who hold and participate in the ecosystem have greater influence. The voting period is 7 days, providing ample time for community discussion and participation.

Other Major Changes

If the proposal passes, WOOFi will also terminate the existing “match + burn” mechanism. This means a fundamental change to the project’s token economics framework. However, the profit distribution method remains unchanged:

40% allocated to token holders via WOO staking
40% used for buyback and burn
20% allocated for foundation expenses

Why Make This Proposal

Addressing Dilution

From a tokenomics perspective, the core purpose of this proposal is to eliminate future dilution risks. When circulating supply reaches 100% of FDV, dilution caused by new token issuance no longer exists. This sends a clear signal to long-term holders: the token supply has peaked and will not be further diluted.

Market Signal

Actively burning a large number of tokens is generally viewed as a positive signal by the market. It indicates that the project team has confidence in the token’s value and is willing to permanently remove these tokens from circulation. According to the latest data, WOO has increased by 15.17% over the past 7 days, with a 24-hour increase of 4.66%, suggesting the market has already reacted to this news.

Potential Market Impact

Short-term Reaction

During the voting period, the market may remain attentive. If the proposal passes, WOO could see further upward momentum. Token burns often generate positive psychological expectations in the market.

Long-term Significance

In the long run, this proposal reflects WOOFi’s mature thinking on token economics. By eliminating dilution risks, the project offers a clearer long-term value proposition for token holders. Such transparency and commitment may boost investor confidence in the project.

Summary

WOOFi’s burn proposal is a significant governance event. By permanently burning 300 million tokens (15% of the supply), the project will eliminate future dilution risks and bring circulating supply to 100% of FDV. This is not just a numerical change but a demonstration of the project’s commitment to token value. Voting rights are allocated based on staked XP, embodying decentralized governance principles. Whether the proposal passes or not, it reflects WOOFi’s pursuit of a more sustainable token economy. The key follow-up will be the voting outcome and the market’s specific response.

WOO-8,44%

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