The Bancor Vortex and vBNT burner is LIVE.  As of today, 5% of all swap fees on Bancor will be used to buy & burn vBNT.  Burned $vBNT = $BNT locked in Bancor forever.

As swap volume rises, burning accelerates, increasing TVL and reducing the circulating supply of BNT.

For clarity, at a high level $vBNT burning is designed to: Increase TVL: with every swap, fees are permanently locked in the protocol.  Reduce BNT circulating supply: BNT is continuously removed from circulation forever.  Thus, lower risk for users who wish to borrow against staked BNT.

Bancor Vortex can be used to borrow against staked $BNT: “Provide BNT liquidity to a pool.  Get $vBNT; Sell $vBNT for other tokens (BNT, ETH, LINK); Use tokens to provide more liquidity on Bancor or elsewhere when you’re finished, buy back $vBNT to unstake your $BNT.”

Bancor expressed that borrowing against staked $BNT is NOT without risk, when users sell their $vBNT, you’re effectively betting that if/when you eventually buy back the $vBNT needed to retrieve your $BNT stake, the revenue you’ve earned with your borrowed tokens is of greater value than the $vBNT you sold.

The $vBNT/BNT rate reflects the borrowing risk at any given time the higher the $vBNT price relative to $BNT, the lower the borrowing risk $vBNT burning creates a continuous positive pressure on the $vBNT price that effectively increases the network’s capacity to offer credit.

Bancor were incredibly excited for the next phase of the Bancor Vortex to be unleashed.  The $vBNT burn rate will become a critical part of the Bancor DAO’s flexible monetary policy, and may be adjusted to collect up to 15% of swap fee revenue.

Some of them who were neutral about the whole thing stated, “it depends. If burning is bigger than elastic minting, tokenomics is sound. If not let’s find out.” There were others who felt the whole thing is hyped.

Meanwhile, Twitter handle Coin98 Analytics stated, trading volume on Bancor has increased by 6,000% since the release of Bancor v2.1.  Also stated, is Bancor going to be a major AMM player in the near future?

There were other users who stated, I’m so bullish on $BNT after seeing @Bancor release the new Vortex platform. Here’s why Vortex is about to take over, vBNT burning mechanism creates deflationary pressure, Lower risk when users borrow against staked $BNT, and Fees permanently locked into protocol.