We have decided to burn 4,565,000 million $CHART tokens, in part because we’ve spent less than our forecasted budget. We believe this is the right move to make for our token holders. The tokens we plan to burn will come from our operations (1,826,000.00) and integrations/partnerships pool (2,739,000.00).
With a total of 68.5 million circulating tokens based on emissions to date, 4,565,000 million tokens represent 9.27% of the circulating supply or 1.8% of the total supply. The tokens are valued at approximately $90,000. You can view the transactions here:
We never intended to burn tokens, but as we met certain goals, a token burn became a serious consideration. We believe this action will contribute to a healthy CHART token ecosystem.
For now, trading volume is up significantly, and we believe this is a testament to the power of the tools we have created. We can initiate a token burn because we have simply spent less than our forecasted budgets.
ChartEx Token Burn Background
When we designed ChartEx tokenomics, we took cues from the successful launches of past Defi projects. We made some assumptions based on trade volume and liquidity growth while trying to mitigate as many risks as possible.
The general Defi space, however, has not been without some bumps in the road. Starting in early October, we saw interest in DeFi and trading volume decline, and some of our assumptions were proven inaccurate.
We have always tried to include you, the ChartEx community, in our governance process. For example, we asked you to participate in a governance vote to determine how we might best use funds scheduled to be unlocked upon the private sale token release in October.
You voted to use the funds to seed the ChartEx DAO. The token burn will not impact work on the ChartEx DAO. Early in 2021, and in consultation with you, we will begin designing it. 5.65m tokens have been allocated to support ecosystem development of autonomous mechanisms. The vote and its outcome is available here:
What Is A Token Burn?
A token burn is a common and straightforward practice in the token industry, and entails removing existing cryptocurrency coins from circulation. The burning of tokens is conducted by a coin’s founders. Tokens might be burned for several reasons, such as to promote deflation. Since fewer tokens are available in circulation, price increases are promoted.
Altcoin projects use burns to manage the number of coins in circulation, providing greater incentives to investors.
The burning mechanism is unique to cryptocurrency. Token burning serves various purposes. The ultimate goal is to reduce the existing number of tokens available.
Burning is a bit of a dramatic term since all the process does, in reality, is ensure the tokens are unusable. Tokens might be sent to an inaccessible public wallet often referred to as an “eater address” that is viewable by nodes on the network. The status of these coins is public on the blockchain.
Some projects burn tokens once an initial coin offering (ICO) has been conducted so as to remove any unsold tokens from circulation as an incentive for participants. Others still prefer to burn coins periodically at either a fixed or variable interval or volume.
If you have any questions regarding the ChartEx token burn, please visit us today at the below addresses:
Telegram Group: https://t.me/ChartExCommunity
Telegram Announcements: https://t.me/ChartExAnnouncements