Burning tokens is a longstanding practice in the cryptocurrency market. It refers to the removal of certain tokens from circulation. The tokens set for burning are sent to a dead wallet the key of which is unknown. In effect, the tokens can never be recovered.
The goal of token burning is, of course, to augment the value of the coins that remain in circulation. Giants in the market such as Binance and Ethereum conduct token burn events to help correct the price of their respective native coins.
A new protocol named Uniglo.io, however, plans to shake up the typical token burn model to introduce its idiosyncratic Ultra-Burn Mechanism. Analysts say that the new protocol’s burn process is faster than what leading crypto platforms implement.
Uniglo.io is very new. It just started preselling its GLO token last July 15. The first phase of its presale will last until mid-August. Despite the crypto being relatively a novice, it has been showing tremendous growth that far outpace any gains even top 10 cryptos could show for in this market.
The Uniglo.io project is in the decentralized finance (DeFi) space. It offers opportunities for investors to own a social currency tethered to a multi-asset-backed treasury. As the assets in the Uniglo Vault appreciate, so does the value of the GLO token.
But what could make this protocol offer exponential gains for token holders is its unique Ultra-Burn Mechanism, which involves buying back and burning tokens in the secondary market using the gains from the use of the said treasury. Rather than doing token burns occasionally, Uniglo.io will do it much more frequently. And the community decides collectively how much to burn, which means each token holder has influence over the growth of their GLO tokens.
Binance Coin (BNB)
Binance Chain implements a quarterly burn event. The most recent event was completed during the week of July 13. Currently, the number of BNB tokens that have already been burned stands at 1,959,595.29. This amount translates approximately to over $444 million. The amount of BNBs removed from circulation per quarter is calculated based on the Auto-Burn formula, which the protocol started using in the final quarter of 2021. According to the founders of Binance, the goal has always been to eventually cut the supply of BNB to half. Uniglo.io, however, could go beyond burning half of its supply.
In August of 2021, Ethereum restructured its fees to create a base fee and a tip for miners. This was done in part to implement a new burn mechanism that would burn the base fee. This mechanism was introduced in preparation for the upcoming Merge project. And so far, it has accelerated the burn rate of ETH. At present, it has already removed over two million ETH coins from circulation, which equates to over $5.82 billion approximately. While this is an impressive burn rate, it represents the standard token burn across the industry, which refers to burning a portion of the transaction fees. Uniglo.io, on the other hand, applies both the standard burn model as well as its Ultra-Burn Mechanism.
The bottom line
Token burns have played a key role in preserving the value embedded into cryptos. As Uniglo.io takes the deflationary approach a step further, GLO token could experience growth rates that far exceed Binance Coin and Ethereum.
For More Information:
Join Presale: https://presale.uniglo.io/register
Always conduct proper research when dealing with pre-sales of currencies and tokens. The information above does not constitute investment advice by CryptoMode or its team, nor does it reflect the views of the website or its staff.
CryptoMode produces high quality content for cryptocurrency companies. We have provided brand exposure for dozens of companies to date, and you can be one of them. All of our clients appreciate our value/pricing ratio. Contact us if you have any questions: [email protected] None of the information on this website is investment or financial advice. CryptoMode is not responsible for any financial losses sustained by acting on information provided on this website by its authors or clients. No reviews should be taken at face value, always conduct your research before making financial commitments.