Solana-based Sanctum to Burn 25.9% of Supply, Revamp Token’s Ticker

Sanctum, the leading liquid staking protocol on Solana, has submitted a governance proposal to burn over 25% of its total supply. The proposal also outlined that the ticker of the project’s native token will change from CLOUD to SANC.

Following this announcement, Sanctum’s native token, CLOUD, soared by approximately 19%. This brings its trading price at the time of writing to $0.0314.

Sanctum to Burn 25.9% of Total Supply

Per the proposal, dubbed CLOUD-008, Sanctum plans to burn the remaining 259 million CLOUD tokens allocated for the Community Reserve.

Originally, the Solana-based protocol had approximately 307 million tokens designated for the Community Reserve. These tokens, controlled by governance, are earmarked for community incentives, such as staking rewards. Already, 45 million tokens have been used for active staking rewards, while about 3 million CLOUD tokens have been injected into a Kamino vault.

The remaining 259 million tokens, representing 25.9% of the total supply of 1 billion tokens, are what the project wants to burn.

Highlighting the reason for the burn decision, Sanctum noted:

“The leftover Community Reserve is a large structural overhang that turns away investors who fear that reserves may get dumped on them. We know this through various conversations with investors (retail and funds).”

The token burn will downsize the total supply by a quarter to approximately 741 million tokens.

Aside from token burn, most projects also explore buybacks as a way of bolstering their token’s value. The 5-year-old project explained in the proposal that, while programmatic buyback is a useful tool, this option is best suited for established companies in traditional equity markets with 10 years of experience or more.

CLOUD to SANC Revamp

Sanctum also mentioned in its proposal that it is changing its ticker from CLOUD to SANC. Notably, only the metadata will change, while the tokenomics and address remain the same. This means that CLOUD holders need not do anything like a token migration.

The team clarified that the ticker change decision is not open to voting.

The team explained that the ticker revamp will make “the token findable by anyone who hears about Sanctum.” The proposal bluntly revealed that, looking back, Sanctum sees that using CLOUD as its ticker was a mistake.

Presently, searching for CLOUD on the internet does not easily connect people to the project. In most cases, those outside its ecosystem cannot identify CLOUD as its ticker; hence, the reason for the change.