Unveiling Scarcity: LAKE Token Burns 66% of the total supply, forever!

We are thrilled to announce the first of a series of monumental leaps forward for LAKE Token that demonstrate our unwavering dedication to its growth, value, and the vibrant community that propels it. In a resounding declaration of commitment, we have taken the groundbreaking and significant step of burning 66% of the total supply of the token.

The rationale of the burn

Eight months after the token generation event and after global data donation movement was supported by the biggest healthcare providers in the region as well as global research companies we are revising our tokenomic assumptions — for the maximum benefit of the $LAKE token holders and our community.

• Removing excess. Token burn erases permanently superfluous $LAKE token supply. Data Lake keeps a small allocation (13% of the new total supply) for attracting strategic investment and incentivizing data donors. Apart from that after the burn the market will be the main place to acquire the $LAKE token — for the benefit of all current $LAKE token holders. In particular, we are removing excess allocations that were earmarked for incentivizing our partners or sustaining company’s operations.
• Product as source of value. Over the past months we’ve been working tirelessly to develop our consent application to make it useful for healthcare enterprises to track health data usage for research purposes, with the $LAKE token at the heart of its incentivization mechanisms. It is our long-term strategy to build value of the token thanks to its utility, rather than free giveaways. Hence, we’re erasing the allocations earmarked for airdrops and affiliation programs, focusing on fundamental, utility-driven value (more announcements soon!)
• Rebalancing token supply. After the burn also the proportions of the tokenomics change. There is significantly more emphasis on incentivizing higher liquidity. It all fits into a larger strategic direction to make the market the only place to purchase $LAKE tokens from.

Why Burn So Much? Enhancing Scarcity, Amplifying Value

Burning such a large percentage of the total supply is a big move, but it is being done very intentionally on our part. By permanently removing these allocations from circulation, we are making the distributions and value of LAKE more equitable, enhancing the scarcity, as well as protecting against future inflation

We believe that everyone is better off with this maneuver: those who invested in LAKE have now automatically tripled their allocation over the total supply, while the team has shown its commitment to the success of LAKE, burning many allocations that would have instead gone to the market and replenishing the one dedicated to liquidity pool.

With purposeful reasoning behind burning each allocation, we equally made the decision to do it in a single, transparent burn transaction.

Here are the allocations that we decided to removed from circulation forever — with explanation of the reasoning for each one — expressed as a percentage relative to the total supply and as number of tokens:

Allocations Burnt

🔥 100% of the Treasury, being 20% of the total supply, or 1.5 billion LAKE tokens burned 🔥

Why burn the treasury?

Generally speaking, most projects need their treasury for fundraising and expansion — but this means putting sell pressure on their token, and using their community’s liquidity to fund operations. Instead, LAKE’s value and our funding come from our core and growing business. We are a fundamentals-based company, building a growing customer base and helping create a new data economy. Getting rid of the treasury — a huge allocation at 20% — represents our belief in and dedication to building an ecosystem with real-world value, and ensuring that value doesn’t come from sell orders against our community.

🔥 77.77% of the Strategic Pool, being 16.33% of the total supply, or 1.225 billion LAKE tokens burned 🔥

Why burn part of the Strategic Pool?

While we dedicated a lot of time to fundraising, market conditions meant the term sheets we were receiving weren’t favorable to us or aligned with our core values. As we are confident that our business operations will provide for our needs to finance Data Lake, we have decided to burn the majority of this allocation. We decided on keeping a small amount to ensure that if the right investor comes along, we maintain the flexibility to respond to those opportunities.

🔥95.24% of Data Donors Incentives, being 6.67% of the total supply, or 500 million LAKE tokens burned 🔥

Why burn the allocations dedicated to Data Donors?

Don’t get us wrong, despite this burn, we still maintain a generous 14% of the after-burn total supply to our Strategic pool and Data Donors Incentives, together. We believe that our current and future Data Donors are at the core of our business and should be rewarded for their contributions to the success of Data Lake.

🔥 100% of Data Flow Animators, being 7% of the total supply, or 525 million LAKE tokens burned 🔥

Why burn the Animators Pool?

The animators pool was originally intended to reward integrators and technological 3rd-parties participating in the medical data flow system. Since the first whitepaper, it has become clear to us that this allocation isn’t actually needed at all for successful data flow between data providers and researchers. We therefore made the decision to remove it, as it represented a very large allocation sitting around without a purpose.

🔥 66.66% of Team and Founders, being 13.33% of the total supply, or 1 billion LAKE tokens burned 🔥

Why burn part of the Team Pool?

To ensure that the new tokenomics aligned with our core value of fairness, we have removed 2/3 of the team token allocation, representing 13.33% of the total supply. The team allocation was set aside to attract and reward new talent to get our system and technologies off the ground, and we feel it has accomplished that perfectly. We hope this move reflects our commitment to ensuring fairness, equity, and the project’s flourishing evolution in the long term.

🔥 50% of Liquidity Providers Incentives, being 4% of the total supply, or 300 million LAKE tokens burned 🔥

Why burn part of the Liquidity Providers Incentives allocation?

This measure was taken to further reduce the number of tokens under the team’s control. Moreover, in a context in which LAKE becomes drastically more scarce, the amount of tokens needed to incentivize its liquidity provisioning has to become lower, too.

🔥 66.66% of Advisors, being 2% of the total supply, or 150 million LAKE tokens burned🔥

Why burn part of the advisors pool?

We have already built up an incredible group of advisors for our project who have helped take our idea from whitepaper to reality! With a talented and dedicated advisory board in place for almost two years, we felt this allocation had also served its purpose, and we are burning the tokens that weren’t assigned to any advisor yet.

✅ The Liquidity Pool allocation has increased by 60%, being 3% of the total supply, or 225 million LAKE tokens ✅

Why dedicate more tokens to the Liquidity Pool?

In the realm of Decentralized Finance, liquidity is key for a token to be successful. For this reason, instead of burning, we have actually replenished the Liquidity Pool allocation with 225 million LAKE tokens that were previously assigned to other allocations.

🔥🔥🔥 Total: 66.67% of the total supply have been burned forever! New Total Supply: 2,500,000,000 LAKE tokens! 🔥🔥🔥

Proof of Burn

“Burning” tokens means to send them to an address that is not — and can never be — controlled by anyone, de facto making those tokens inaccessible forever. Being on a transparent blockchain like Ethereum means that you don’t have to trust us about the completion of the burn — you can verify our burn transaction for yourself here: https://etherscan.io/tx/0x26b457d561ab9788802e6af7da9e86dfbbcad950f454cd6d3d9c4f2970bd5450

Embracing a Future Fueled by Unity

This transformative burn is more than just a strategic maneuver; it’s a testament to our shared vision and commitment to the success of LAKE. With this bold action, we are reinforcing our promise to the LAKE community, as well as our commitment to both transparency and growth.

Stay tuned as we embark on this exhilarating journey together, building upon the momentum of this historic burn.