What it is
Burning tokens is their intentional destruction for the purpose of removal from circulation.
This does not mean that tokens belonging to investors will be removed from circulation and burned. This means that the RKT8 project is repurchasing tokens from the market at market prices and destroying them. Due to this, 2 effects are achieved:
- there is an increased demand for tokens
- reduced circulation of tokens
These two factors together lead to an increase in the rate of the token and the purpose of the combustion process is precisely this.
Mechanics of burning tokens
The process consists of several stages:
- drawing up a budget for the buyback on a quarterly basis no later than the 18th day of the month following the reporting month. The RKT8 project allocates 18% of advertising revenue and reflects this in a report published on this site and on a telegram channel.
- coins (tokens) are purchased for this budget, which are traded in the most liquid currency pair to RKT8 (currently Waves, but this may vary)
- purchased coins (tokens) are sent to buy RKT8
- purchased RKT8 tokens are burned live on one of the project platforms
These actions are performed until the number of tokens in circulation is reached 4,888,888 RKT8. The project management has the right to make a decision on the redemption and burning of tokens more often than in this Regulation.
The purpose of these actions is to protect investors from token depreciation.
This regulation is an integral part of white paper RKT8 and can be adjusted by the decision of the community by voting on the blockchain.
The first test burning of tokens RKT8 took place on November 14, 2018 – 500 rkt8(transaction https://wavesexplorer.com/tx/FcwMg4rJyMER86aLKAGMZT2t73FPSF3wSkjvGwhneGZn)