CyberConnect Rejects Proposal CP-1 After CYBER Coin Dropped Over 40% - Blockchain.News

CyberConnect Rejects Proposal CP-1 After CYBER Coin Dropped Over 40%

Rebeca Moen Sep 02, 2023 09:40

CyberConnect rejected its CP-1 snapshot proposal, aiming to improve CYBER token liquidity across networks, causing a 40% drop in value, raising concerns about potential investor withdrawal.

CyberConnect Rejects Proposal CP-1 After CYBER Coin Dropped Over 40%

CyberConnect, a blockchain project focused on decentralized social protocol championing identity sovereignty for mass adoption and network effects, announced the rejection of its much-anticipated snapshot proposal CP-1. The official Twitter account of CyberConnect @CyberConnectHQ stated,

There was a mistake in the snapshot proposal CP-1 and so it was rejected. The intended usage of Community Treasury for providing liquidity was 1,088,000 CYBER which was unlocked already.

What The Proposal CP-1 Says

The primary objective of proposal CP-1 was to enhance the liquidity of the CYBER token across Ethereum (ETH), Binance Smart Chain (BSC), and Optimism networks. It states:

To optimize CYBER liquidity across ETH, BSC, Optimism networks, we propose a series of active balancing strategies for CYBER token on these networks. 

The proposal outlined a series of active balancing strategies, including:

Deployment of Bridges: The plan was to deploy CYBER-ETH, CYBER-BSC, and CYBER-OP bridges, powered by LayerZero's ProxyOFT. This would have allowed users to bridge CYBER tokens from any chain to another via Stargate. LayerZero Documentation

Utilization of Community Treasury: The CyberConnect foundation intended to use 1,088,000 unlocked CYBER tokens from the Community Treasury to provide liquidity for these bridges. The foundation aimed to maintain 25,000 CYBER in each of the CYBER-ETH, CYBER-BSC, and CYBER-OP bridges.

Supply Maintenance: In case of liquidity issues on any of the networks, the foundation would burn and mint CYBER tokens across chains to maintain a balanced supply. The total supply of CYBER tokens across all chains would remain constant at 100,000,000.

Market Reaction: A 40% Drop in CYBER Token Value

Following the announcement of the proposal, the value of CyberConnect's native token, CYBER, experienced a sharp decline, plummeting over 40% within hours. This has raised concerns among traders that the CyberConnect project owners and early investers would like to dump CYBER. However, upon the subsequent rejection of the proposal, the CYBER token experienced a slight rebound in price.

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