While cryptocurrency solves many of the challenges that come with traditional finance, it isn’t without complications. All cryptocurrency coins face the issue of supply and demand, as well as the value of the coin itself. Instead of allowing inflation to run unchecked, Vulcan Blockchain’s creator, Bryan Legend, worked with his team to introduce a self-righting mechanism for Vulcan’s native $VUL coin.
Legend’s team created the FireStorm mechanism to vaporize $VUL in the FirePit to make the Vulcan Blockchain more sustainable over the long term. Legend explains how FireStorm works, what happens during vaporization events, and why FireStorm is beneficial to both investors and coin holders.
Bryan Legend Explains Vulcan’s FireStorm Mechanism
Bryan Legend is a self-taught entrepreneur who’s created multiple decentralized finance initiatives, including the Clever DeFi Protocol, Safuu, and OOXY Labs. During his time at OOXY Labs, Legend developed the Vulcan Blockchain, which is the world’s first auto-staking and auto-rebasing Layer 1 blockchain.
It offers an impressive 55% annual percentage yield for investors and coin holders who use $VUL. Legend created Vulcan to auto-rebase every 15 minutes. The auto-compounding feature also increases $VUL ownership, adding to the platform’s value as a passive income source.
However, for all of Vulcan’s successes, Legend needed to solve a critical issue to create a sustainable blockchain that would last decades. Offering such a large APY at the beginning of the blockchain gave it a runway of just two years. “There’s nobody who wants a blockchain to run for two years. It’s not practical at all,” Legend says.
Fixing the issue isn’t as simple as editing the blockchain, either. “With a blockchain, you can’t edit it like a smart contract. Once we’re on mainnet, we’re on mainnet,” Legend explains. Legend’s team had to devise a creative solution to make Vulcan more sustainable in the long term. The system needed some way to reset coins to stabilize the blockchain.
Bryan Legend’s team came up with the FireStorm mechanism — formally called the FireStorm Auto-Deflationary Metric — in response. Inspired by ethereum’s Improvement Proposal 1559, FireStorm aims to solve issues with $VUL coin supply management.
During a FireStorm event, Vulcan vaporizes $VUL coins to reduce the total number of coins in circulation. Previously, coins went into the FirePit, where they continued to live and rebase. However, after FireStorm, these coins won’t continue to rebase. The mechanism permanently burns coins so they won’t continue to rebase in the FirePit. Legend emphasizes that this is only for coins in the FirePit, and FireStorm won’t affect coins in users’ wallets.
“The undertaking of a blockchain has been so much more complex than we ever thought we would be. It’s a great thing, but things take time,” Legend explains. “FireStorm not only gives us more runway but it eliminates total supply.”
How Vaporization Events Occur
According to Bryan Legend, FireStorm won’t be a constant process, but rather a series of scheduled events. First, there will be an initial vaporization event, which will happen 90 days after mainnet launches. From there, events will happen every three months.
The first vaporization event will be the most significant because it’s the first of its kind. In the first FireStorm event, an estimated 31% of the total supply will be vaporized. After this vaporization event, the supply of $VUL will be reduced to just 51%. Over the next 90-day period, the $VUL in the FirePit will continue to rebase. Subsequent vaporization events will reduce the FirePit in its entirety, taking the supply down to zero.
“It will always be a repeating process of marketing and advertising to the variety of DeFi users about our supply being reduced heavily,” Legend says. However, he doesn’t believe in making FireStorm a secret. The Vulcan decentralized application will feature a public countdown, in addition to the number of coins to be vaporized, so everyone is aware of the event before it happens.
The Benefits of the FireStorm Mechanism
“This will make our blockchain last for a lot longer than previously planned,” Bryan Legend explains. “We want something sustainable that will last. With FireStorm, we’re looking at 18 to 19 years, which is a very long runway.” According to Legend, FireStorm has numerous benefits to coin holders, investors, and the Vulcan Blockchain.
The first is scarcity. Scarcity naturally increases demand, which increases value. FireStorm reduces the supply of $VUL, which makes the coins more scarce. In response, this increases demand for the coin, which also increases value.
FireStorm leaves more room for price appreciation by regularly reducing supply on a predictable schedule. Periodically resetting the system in this way will create higher coin prices, which benefits long-term coin holders as well as investors.
Deflation is another benefit. Inflation complicates both traditional finance and DeFi. But reducing the total supply of $VUL creates a deflationary environment. This encourages users to hold on to their tokens longer, discouraging inflation in coin value over time.
Additionally, there is improved tokenomics to consider. Reducing the supply of $VUL improves the coin’s utility. Keeping the burn percentage above 51% makes the Vulcan Blockchain more sustainable over the long term, too. FireStorm incentivizes token holders to engage and participate more, which makes the network more active. This makes the Vulcan ecosystem stronger and more sustainable.
FireStorm: A Game Changer for Investors and Coin Holders in DeFi
Blockchain thrives on user adoption, but leaders in the cryptocurrency space need to make their ecosystems more sustainable and user-friendly. As the creator of Vulcan Blockchain, Bryan Legend wants to change how people think about finance. That includes making alternative DeFi options more transparent, trustworthy, and future-focused.
Through the FireStorm mechanism, Vulcan promises to solve the tricky issue of token supply management, which is critical for cryptocurrency’s longevity. “This is the first mover advantage,” Legend says of the innovation.
Reducing supply creates scarcity and, in turn, value. This improves investor confidence, encourages users to be active, and improves long-term coin holdings. As Vulcan Blockchain prepares for its first significant FireStorm event, Legend believes the change will make the platform more sustainable long-term, creating a viable DeFi alternative for both coin holders and investors.
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Source: https://coindoo.com/the-firestorm-mechanism-by-bryan-legends-vulcan-blockchain-is-a-defi-game-changer/