Please note that this project is in very early development.
There is a new deflationary token being created on the Tezos blockchain by a Paypal software engineer II named James Gan who is a Cornell graduate and was also a former Seattle Lead Organizer for the Tezos Commons Foundation. The new token is also being created with the help of the Codeday Codelabs programme and forms part of their advanced level projects. The team on the whitepaper is named as Andrew Chang, Anh Nguyen and Oscar Vergara.
Spark is a deflationary token, starting with an initial supply of 1,000,000 ‘Sparks’ and these tokens will be burnt at a rate of 2% per transaction until they completely deplete. This means that “that every transaction trading the tokens and calling upon the smart contract will destroy two percent of the transferred amount, resulting in a gradual decline in the finite supply of tokens.” At this early stage, the project has a whitepaper (published July 30th) and a developing Github.
The project is modelled on the Bomb token which lives on the Ethereum blockchain and also starts with 1,000,000 tokens. The Bomb Token has a deflationary burn rate of 1% and presently has 919,993 tokens in its supply at the time of writing. The bomb token is projected to deplete completely around 2034, but due to the 2% burn rate of the Spark token it is anticipated that it will deplete earlier according to the whitepaper.
A wrapped version of the Bomb Token has been created recently which interlinks with Ethereum Defi protocols such as Uniswap. The wrapped version: “still maintains the integrity of Bomb by burning 1% and maintaining zero decimals. The only difference is that it doesn’t burn when being sent to Uniswap.” Bomb wrapping is available at https://bomb.exchange/. Unlike the Bomb Token, the Spark token has a deflationary burn rate of 2% as opposed to 1%.
The Bomb project distributed its tokens via an airdrop on the Ethereum blockchain, this method was praised in the Spark whitepaper and it was stated the token would likely undertake a similar distribution method. The whitepaper states: “Through a Reddit thread, we plan to distribute a fixed amount to users via airdropping.”
The Spark project is written in Michelson and the MiniTez template created by Claude Barde is also employed.
On why the project has chosen the Tezos blockchain it is stated:
Like the Bomb token the Spark token will start out as an experiment, but as the Bomb token has shown with the introduction of Defi there could be a place for deflationary tokens of this nature to fit as a financial asset within a decentralized financial system.
This article has been sponsored by the Luv4 Marketing digital marketing franchise.
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