Cryptocurrency burning is an important process to keep increasing its value and make it stable.
This article will help you understand it better. So, keep reading!
What is Token Burn?
It is the process of the permanent destruction of tokens/coins. In other words, it means removing coins from circulation, thereby reducing the total supply. Usually, it’s done by transferring the tokens in question to a burn address.
💡Burn address — the wallet from where the tokens can not be removed. It has no private key and no accessing code.
Why Burn Tokens?
Reasonable question. However, the purpose is apparent.
- Increasing the value of the token. Coin burn reduces the overall circulation of the token. Whenever this happens, the price of the token tends to rise. The asset becomes more defined — this helps to increase the token’s volume and demand.
- A steady condition of the token. Regular burning of tokens provides stability. That means that the market doesn’t have a strong influence on its value. It also bets on a long-term price increase.
How do BSW Tokens get Burned on Biswap?
Biswap has its deflationary mechanisms to keep the BSW token valuable and less volatile.
The BSW token burning normally happens once a month. At the same time, Biswap reserves the right in its sole discretion to change or amend the burning schedule at any time and for any reason.
💡Learn more about BSW token here:
https://bit.ly/3OZvinu
As of July 2022, we have already burned 36 938 270 BSW tokens (~ $11 413 925).
The metrics used for token burning are:
- All the rewards from accounts with no referrer
- BSW Auto Compound performance fee
- Biswap Holder pool early-withdrawal fee
- Auto Compound pool early-withdrawal fee
- 50% of the trading fees that are used for repurchasing the BSW tokens from the market
- 13% of all the purchased lottery tickets
- 10% of BSW from NFT Sales Revenue
- 10% of the fee charged in case of an early withdrawal from the user’s game balance
- 50% of the 1% Marketplace commission fee that is used for the purchase of BSW
- 0.5% Royalty Fee from each sale of Biswap Robbies NFT Earn Collection
- 1% Royalty Fee from each sale of Squid NFTs Collection
- 15% from IDOs revenue
🔥To track the data of BSW burning, follow this link:
https://bit.ly/3NHOiFZ
Conclusion
The relevance of this process is quite obvious. We hope it is easy for you to understand its importance now. Biswap is here for you to help with all of your questions.
Education is a key to wealth and success!
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