“Urgent” Governance Proposal Brings Dump at Soaring CyberConnect (CYBER)

CyberConnect (CYBER) announced an urgent proposal to optimize the liquidity of its native token CYBER on the Ethereum, Binance Smart Chain and Optimism networks.

The proposal, which does not comply with the DAO’s 7-day voting period policy, will expire within 12 hours after being published.

According to the proposal, CyberConnect plans to build a CYBER-ETH, CYBER-BSC, CYBER-OP bridge powered by LayerZero’s ProxyOFT technology. This will allow users to CYBER bridge from any chain to another on Stargate, CyberConnect’s cross-chain portal.

More than 10 Million Treasury CYBER Tokens are Planned to be Used

The proposal also proposes using Cyber Community Treasury’s unlocked CYBER tokens to provide liquidity for bridging. The Foundation of the altcoin will try to keep 25 thousand CYBER-ETH, 25 thousand CYBER-BSC, 25 thousand CYBER-OP on the bridge. A total of 7,000,000 CYBER-BSC and 3,888,000 CYBER-ETH will be available to maintain liquidity in the bridging service.

Additionally, the proposal states that if any of CYBER-ETH, CYBER-BSC or CYBER-OP runs low in the treasury, the foundation will burn and mint CYBER across chains to maintain a good CYBER balance on each network. The total CYBER supply across all chains will always remain unchanged at 100,000,000.

The motivation behind the proposal was stated as providing the same access to CYBER for users on different networks and reducing confusion for users entering the ecosystem.

Currently, there is a significant imbalance in the distribution of CYBER among users, CEXs and DEXs. This imbalance caused a large price difference between CYBER-ETH ($20.47) and CYBER-BNB ($13.40) and CYBER-OP ($13.08) on DEXes on Friday, September 1, 2023.

*This is not investment advice.