WOOFi, the core DEX protocol within the WOO ecosystem, recently officially put its proposal to "permanently burn 300 million WOO Token " into the voting phase. According to information released on January 5th, the number of Token slated for burning is currently locked and represents approximately 15% of the total WOO supply – a significant enough amount to have a long-term impact on the project's supply and demand structure.
If the proposal is approved, the total circulating supply of WOO will reach 100% of the FDV, effectively eliminating the risk of future dilution. This is XEM a strategic move by WOOFi, given that many DeFi projects are under significant pressure from Token inflation and declining investor confidence following a period of market volatility. Permanently burning these locked Token also ends the previously Capital "matching + burning" mechanism, making the tokenomics model simpler, more transparent, and easier to predict.
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Notably, despite significant changes in supply, the revenue distribution of the WOO ecosystem remains unchanged. Specifically, 40% of revenue continues to be distributed to Token holders through WOO Staking , thus maintaining long-term holding incentive. The remaining 40% is still used for market buybacks and Token burning, contributing to continuous supply reduction pressure. The final 20% is allocated to the foundation's operating and development costs, ensuring the project has sufficient resources to expand its product, integrate more partners, and maintain competitiveness in the DEX market.
