BSW Token Burn
Token burning permanently removes tokens from circulation, thereby reducing the total supply. It can be done in several ways, most commonly by sending the tokens to a so-called dead address. Token burning is usually performed by the development team behind a particular cryptocurrency asset. Its current balance is publicly visible on the blockchain, but access to its contents is unavailable to anyone.
There are several benefits of a coin burn, and they are as follows:
- Increase in the value of the token
This is probably the most well-known benefit of a coin burn. Coin burn reduces the overall circulation of the token. Thereby the overall supply decreases. It might potentially increase the token value. The constant burning of the coin helps to keep a steady value.
- A steady value of the token
Constant token burning helps to keep a steady value of the token, and it also bets for a long-term price increase. Coin burn can make the holder’s token more valuable than before the burn.
The practice of burning may involve the project’s developers repurchasing tokens from the market or burning parts of the supply already available to them. Here, at Biswap, there are our deflationary mechanisms in place.
- All the rewards from accounts with no referrer are used for BSW token burning
- Biswap Holder pool & Auto Compound pool performance fee is used for token burning
- Biswap Holder pool & Auto Compound pool early-withdrawal fee is used for token burning
- 5% of the trading fees are used for repurchasing the BSW tokens from the market and burning them
- 10% of BSW from NFT Sales Revenue
- 50% of the 1% Marketplace commission fee is used for the purchase of BSW and burning them
- 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
Even though BSW token burn occurs once a quarter, BSW token buyback happens during the months, and the final burn report is shared within the first 10 days of the new quarter.