Shiba Inu (SHIB) and Binance Coin (BNB) have their respective systems for burning tokens. These systems are designed to keep the supply of tokens under the desired threshold to help maintain the value of their respective tokens. However, Uniglo (GLO), which is a new player in the decentralized finance (DeFi) space, demonstrates to SHIB and BNB holders that token burning can bring a lot more value. In this article, we discuss in detail Uniglo’s idiosyncratic Ultra-Burn Mechanism.
The impact of Uniglo’s Ultra-Burn Feature
Uniglo is a relatively new social currency that has not even been publicly launched yet. It’s a new DeFi project that started the first phase of its presale on July 15. The project is now in phase two of its presale period, offering a 2.5% discount for every GLO token purchased before the third phase commences on September 15.
The Uniglo project offers a cryptocurrency that embodies long-term investment and wealth accumulation. As earlier mentioned, it has a unique feature called Ultra-Burn, which works on the supply side of the tokens. The mechanism essentially helps to drive down the total supply of GLO tokens. And as GLO becomes more and more scarce, the higher its value could go.
On the demand side of GLO, the Uniglo project introduces an Asset Vault that will house different kinds of well-curated digital currencies and digitized assets. Once these assets increase in value, the project can sell them, and the profits are used to buy back GLO tokens from the market. Making more profits from this vault means more tokens can be removed from the secondary market and taken out of circulation forever.
With the Ultra-Burn Mechanism, Uniglo aims to reduce the token supply to a very small amount, which would effectively limit the number of GLO holders. The membership in the community, therefore, becomes exclusive, ensuring that long-term GLO holders are rewarded.
Shiba Inu (SHIB)
Shiba Inu also implements token burns to reduce the supply of SHIB in the market. It has a Shiba “burn portal” where SHIB coins are sent to be removed from circulation forever. Shiba Inu is the second biggest meme coin/dog coin next to Dogecoin (DOGE). To help maintain their position in the market, the Shiba Inu community regularly votes on token burn events, which is essential, as the project has a very large token supply amounting to one quadrillion. Five hundred ninety trillion of this supply are in circulation.
Binance Coin (BNB)
For Binance Coin (BNB), which is the utility token of Binance Chain, a quarterly event is conducted to take BNB tokens out of circulation. The founders of Binance have already communicated in the past their intention of burning up to 100 million BNBs, which is approximately half of the total token supply. Toward the end of 2021, the platform introduced its Auto-Burn formula, which automatically calculates the number of BNB tokens that need to be burned for the given quarter. Binance Chain conducted its latest burn event in July and is set to run its final burn event within the fourth quarter of 2022.
Token burns are a tried and tested method to reduce the token supply and maintain the price of tokens. Uniglo, however, pushes it further by burning tokens based on the profit-generating capacity of its Asset Vault rather than simply scheduling a regularized token burn event.
For More Information:
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.