Wall Street Memes has introduced a new burning mechanism, with 5% of the $WSM supply allocated for elimination. This activation marks the beginning of a deflationary trend for $WSM tokens, following a recent adjustment to the original plan. Initially, a buyback of 10% of the net gaming revenue was planned, but a more bullish approach has now been chosen.
Wall Street Memes has revealed that the burning mechanism will now apply to 100% of the net gaming revenue (NGR) of $WSM generated by its flagship product, WSM Casino. The first $WSM burning event will commence on February 29th, involving all net gaming revenue generated between October 2023 and January, amounting to approximately 5% of the total $WSM supply.
The burning mechanism aims to decrease the circulating supply of $WSM tokens, potentially generating a deflationary effect that could drive up the value of $WSM. Throughout the year, monthly burning events of gaming net revenue are planned, which could impact the long-term tokenomics of Wall Street Memes. Details of the burning events will be trackable on the WSM Web3 Dashboard starting from February 29th.
However, it remains to be seen whether the first $WSM burning event will positively influence its value. In recent times, there has been significant growth in ERC-20 meme coins, driven by increased fees on the Ethereum network and growing interest in ERC-404 tokens. These were launched by Pandora on February 5th, addressing the issue of non-fungible token indivisibility.
Although the flow of meme coins is shifting to the Solana blockchain, $WSM has continued to maintain a strong performance compared to rivals like BONK. During a downturn for BONK between February 16th and 18th, $WSM even outperformed the price of $BONK, safeguarding its holders from potential declines.
Technical analysis of $WSM price suggests a consolidation of its short-term structure, with key indicators such as RSI and MACD signaling positive prospects. $WSM's position above the 20-day moving average, along with the RSI in overbought territory and the MACD indicating a slight bullish movement, suggest the potential for further price appreciation.
In conclusion, the February 29th burning event could serve as a significant catalyst for $WSM. To stay updated on the Wall Street Memes project, one can follow it on various social platforms or join the WSM community on Discord and Telegram.