Coinage Launches $PLYBTN Read/Watch/Own Burn Mechanic and 10% Burn

After launching one of the largest Solana memecoin fair launches this year, the community-owned Coinage DAO is announcing a new 10% burn of the Play Button tokens it controls and the creation of a perpetual token burn program.

While prior attempts of token burn programs in the memecoin space have shown mixed results at best, the Coinage community unanimously approved our token burn proposal in an attempt to align incentives around our mission to further our community-owned outlet and the PLYBTN community.

Here’s a closer look at how we got to this point in the Play Button memecoin experiment, and why our new plan, which we are dubbing READ/WATCH/OWN (hopefully) bucks the trend of meaningless token burns as we tie future monthly PLYBTN token burns to Coinage’s public video view totals on social platforms. And for onchain sleuths, here is the transaction that shows Coinage just burned more than 86 million PLYBTN tokens.

On Token Burns and Buybacks

Crypto’s growing fascination with token burns and buybacks pretty closely mimics what companies have been doing with their stocks on Wall Street for centuries. But according to new guidance from the SEC, memecoins are not to be seen as stocks or securities. So why are so many crypto projects attempting buybacks and burns now?

Coinage NFT holder and Fundstrat’s Head of Digital Asset Strategy Sean Farrell recently pointed out that buybacks and burns in crypto are getting more popular.

“Projects are making, and will continue making a very concerted effort towards better defining value accrual mechanisms for their tokens,” he said, noting that the reason those efforts are only now coming into style could be due to increased regulatory clarity by the SEC and a market that only recently began assigning a premium to projects with proven sustainability in their tokenomics.

“Those two factors have prevented any significant movement toward developing things like dividends and buybacks that really better align the token holder with project developers,” he said.

Some projects have seen mixed results with buybacks, and others have seen mixed results with token burns. But fundamentally, the notion of either boosting a project somewhat depends on the intended goal.

Jupiter, for example, recently saw its token price climb 40% after announcing a buyback program using 50% of the fees its protocol was generating.

However, Pudgy Penguins saw its new token fall by about the same amount since it announced it would be burning nearly 15% of its PENGU token supply.

Of course, we should note that buybacks and burns are entirely different different tools for projects. And we should also note that since PLYBTN is now trading, that this article is in no way meant to be a representation to the status purpose, value, or other aspect of the PLYBTN token. The PLYBTN token, after all, is a memecoin celebrating Coinage crossing 100,000 subscribers on YouTube.

But as memecoins have shown – even while they don’t have any future cash flows that might support their price, they do indeed have value for communities. As such, Coinage’s community thought about implementing a token burn of our own that hopefully serves the shared mission that has brought Coinage members together to co-own the first community-owned Web3 outlet.

READ/WATCH/OWN

As we’ve covered in our first two installments in this series, Coinage’s PLYBTN memecoin was born out of an attempt to celebrate with our community for crossing 100,000 subscribers and earning a YouTube Play Button award. As a community-owned outlet, it seemed like the most natural way to celebrate with a decentralized community. And indeed, we wouldn’t have even won the award without people watching our content, liking, and subscribing.

As the Coinage experiment rolls on, Coinage’s newest proposal for a token burn sought to go beyond simply burning tokens once and calling it a day. Instead, we wanted to implement something that would similarly link individual actions with the betterment of the entire community.

To do so, Coinage unanimously approved a plan to burn more PLYBTN tokens on a monthly schedule beginning in April that is determined by the total amount of video views Coinage earns on our X and YouTube social social platforms. In theory, this would tie incentives for people who like to consume our content on those platforms to the betterment of the Coinage and PLYBTN community. Coinage is beginning this proposal with an immediate burn of 10% of the token supply Coinage directly held after the fair launch, which roughly amounts to 86 million tokens.

More details will be shared as we observe a baseline for Coinage views on these platforms and the Coinage DAO board seeks input from the Coinage community. For updates, check back on Coinage’s site, or in the new PLYBTN telegram. Anyone can mint a Coinage Caucus pass to join the Coinage DAO, and our token-gated Telegram.

Disclaimer: Coinage makes no representations whatsoever as to any status, purpose, value, or other aspect of the $PLYBTN token. It’s a memecoin celebrating a play button.

Coinage is a community-owned DAO letting our NFT holders become actual co-owners in one of the fastest-growing Web3 media outlets. Mint an NFT and become a member today to open a path to patronage dividends, or stake with us to support our project. Subscribe to our free Substack to catch all the important headlines from around the crypto world.