Fortnite-Like Game 'OpenSeason' Burns 82% of Token Supply to Boost Value

In Brief:

OpenSeason, an Ethereum-based battle royale game, will burn 82% of its FU Money (FU) token supply, starting with a 2.67% burn during a recent competition.

The burn is intended to address "supply overhang" and increase the token’s appeal by reducing the team’s control over supply.

Despite community backlash, developers claim the move aims to benefit long-term investors and add value to the project.

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Detailed Analysis:

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Fortnite-like crypto game OpenSeason has announced an unprecedented token supply reduction, planning to burn a total of 82% of its FU Money (FU) tokens. This bold decision began with a controversial burn during a $350,000 competition, where tokens meant for distribution to participants were destroyed instead. Developers initially blamed the incident on an "intern mistake" but later revealed it as a deliberate strategy to revamp the tokenomics.

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Developers, under the pseudonym Krypticrooks, cited the burn as a method to eliminate the "supply overhang," which made FU less appealing as an investment. The core team’s token allocation will drop from 20% to 14% after the burn, reducing fears of centralized dumping. The move is expected to significantly bolster investor confidence by increasing scarcity and aligning incentives with the community.

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Market Implications:

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The decision to burn such a large percentage of tokens could enhance the project's appeal by creating a deflationary model, potentially boosting FU’s value. While the initial backlash from participants led to accusations of scamming, the developers remain confident about their long-term strategy, stating that the burn will benefit those holding FU tokens pre-burn.

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This strategy reflects a growing trend in crypto gaming projects leveraging tokenomics for sustainability and community trust. OpenSeason's drastic measures may set a precedent for other blockchain-based games navigating token supply challenges.

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