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BSW Token Burn
What Is Token Burning?
Token burning is the process of permanently removing coins from circulation, thereby reducing the total supply. Token burning is usually performed by the development team behind a particular cryptocurrency asset. It can be done in several ways, most commonly by sending the coins to a so-called โeater addressโ or โdead addressโ. Its current balance is publicly visible on the blockchain, but access to its contents is unavailable to anyone.
Why Is Token Burning Important?
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 result in an increase in 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 potentially make the holderโs token more valuable than it was before the burn.
How Does Token Burning at Biswap Work?
The practice of burning may involve the projectโs developers buying tokens back 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
- BSW Auto Compound performance fee is used for token burning
- Biswap Holder pool early-withdrawal fee is used for token burning
- Auto Compound pool early-withdrawal fee is used for token burning
- 50% of the trading fees are used for buying the BSW tokens back from the market and burning them
- 13% of all the purchased lottery tickets are used for token burning
- 10% of BSW from NFT Sales Revenue
- 10% from every minting of Player NFT, Bus NFT, and Contract are allocated for burning
- 10% of the fee charged in case of an early withdrawal from the userโs game balance
- 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
BSW token burn normally occurs once a month.
Even though BSW token burn occurs once a month, BSW token buyback happens during the month and the final monthly burn report is shared on a monthly basis.
Biswap reserves the right in its sole discretion to change or amend the burning schedule at any time and for any reason.
How come a burn does not always happen every monthโThe Biswap team analyses the market to assess the necessity of a token burn at a specific time to benefit both the community and the platform. The efficiency of burning, while the market is unstable, drops dramatically. If we burn tokens in the red market, we won't receive significant results.
Last modified 1mo ago