Coin burn may not be a new concept in the crypto industry, but over the years, there have been several variations in its mechanics. For those uninitiated, it is a process of taking some tokens out of circulation for eternity. They are sent to a burn address with unknown private keys. This is basically done to create scarcity and increase demand, which leads to price appreciation.
Binance Coin or BNB is a great example of coin burn implementation, whereby it utilizes a couple of tools to reduce the total supply of BNB. The totality of all the fees collected every quarter is reinvested to buy back and burn BNB tokens.
On the other hand, Shiba Inu has developed a unique burn portal where anyone can burn tokens themselves. More than 400 trillion tokens have been burned to date, thus protecting the floor price of SHIB.
Uniglo takes the burning mechanism to another level with an ultra-burn technique that ensures constantly reducing supply over a period of time. There are two ways in which Uniglo implements the token burn process.
Transaction-based– For each GLO trade, 2% of that transaction amount is sent to Uni Abyss, a burn address with no private keys. As the platform grows in strength, the volume of coins burnt will increase exponentially. The frequency and intensity of coin burning with Uniglo are much higher than BNB or SHIB.
Profit-based – Being a community-owned protocol, Uniglo aims to drive value from its treasury and profits. A portion is reinvested to buy GLO tokens from the secondary market and take them completely out of circulation. The overall supply of GLO is a fraction amount of SHIB, and this will reduce down to dust with a couple of mechanics in action.
Uniglo’s innovative concept poses a challenge to major projects that employ this burning process. This is the first community-focused currency that balances wealth preservation with growth speculation. While it is still in the presale phase, the project has garnered plenty of attention in the media, with retail and institutions getting into the act.
Find Out More Here
Join Presale: https://presale.uniglo.io/register
Source : cryptodaily
Founded in 2017, Crypto Daily originally started as the world’s first free-to-publish crypto news platform, and operated under this model in response to what it deemed as the centralization of information by the largest media outlets. However, owing to the financial demands of running a full time media website, the free-to-publish model was not sustainable enough in which to continue bringing diverse content to the masses.