WOO, the native token of the Woo Network, saw a 20% surge on Tuesday as the team announced significant changes to its tokenomics.
Woo Network is a DeFi liquidity provider for institutional platforms and has attracted equity investments from backers like Binance.
Revamped Tokenomics for Woo
The Woo Network tokenomics revamp involves a series of improvements to its token distribution, the team announced on Monday, (January 10, 2023). These improvements are part of efforts to address issues regarding the current token distribution.
Woo’s token revamp will begin with a planned burn of 705 million WOO tokens, currently worth $127 million. Token burning in crypto is when coins are destroyed by sending them to a burn address, forever removing them from circulation. The planned burn will see 24% of the WOO token supply destroyed.
The tokens to be burned will come from the allocations given to WOO Ventures, WOO DAO, and the project’s insurance fund, according to the announcement. Woo’s statement revealed 147,417,657 tokens from WOO Ventures, 259,136,204 tokens from WOO DAO, and 298,697,900 from the WOO insurance fund are part of the coin burn process. Also, the project will wind down these affected segments following the token burn.
WOO Ventures was supposed to be the investment arm of the project, but the announcement cited “a number of challenges” as being the reason for discontinuing the endeavor.
Following the token burn, Woo Network says it will embark on initiatives to improve the utility of its native token.
The token burn announcement spurred a significant uptick in price action, with WOO gaining 20% in today’s trading. Tuesday’s price spike is in keeping with a positive start of 2023 for the Woo token, which is up more than 45% in the last seven days.
Crypto Tokens Record a Bullish Start to 2023
The WOO token price is part of a series of bullish price actions at the start of 2023. Bitcoin and the rest of the crypto market have experienced significant gains in the early days of the new year, with Solana bouncing 42% in the last week. Metaverse coins like ApeCoin and MANA have also posted double-digit gains within this period.
Despite these pumps, the crypto market is still well off its November 2021 all-time high. The total market capitalization is currently below $1 trillion after a year-long winter that touched virtually every corner of the industry.