Token burning is an intentional act performed by the coin’s creators to “burn” – or remove it from circulation – a specific number from the total number of available tokens in existence. . There are several reasons to write the token this way, but overall, the movie is for deflation purposes. Although larger blockchains such as Bitcoin and Ethereum generally do not use this mechanism, burning is often used by altcoins and smaller tokens to control the amount in circulation, providing more incentive. for investors. Why is Ethersmart tokenizing?
Burning Ethersmart ETM tokens can confuse some people. But this process comes with its own benefits, not only for developers but also for token users. Here are the main engines behind token burning; Increase coin value.
The most common reason behind token burning is to promote and encourage the growth of a coin’s value. According to the economic law of supply and demand, the reduction in the supply of a good in the market drives demand for that particular project. Hence, by burning the token, the supply of the coin decreases in an equivalent manner, leading to a demand for the coin as there is a smaller amount of coins to satisfy everyone’s needs. Therefore, the price of a coin increases in price, stabilizing its value.
For investors, growth in value encourages them to hold their money longer in anticipation of an even better price as demand increases. In addition, keeping money longer helps maintain good network bandwidth, which is beneficial for developers.
Build trust and loyalty
Gaining trust from coin holders is the ultimate goal of any cryptocurrency, especially a new cryptocurrency on the market.
The project developers may decide to make extra profit by selling the excess money to exchanges, at the current skyrocketing price, which is unfair. Furthermore, selling the excess, it leads to allegations that developers are only committed to making a profit and that their coins have no real value.
However, the burning of excess funds shows that the developers are committed to the long-term development of the coin. Therefore, the money raised from the ICO will be used for business operations. But most importantly, the burning of excess coins helps to decentralize the project.
For ETM – a security token, allowing holders of dividends from a project, burning the token works like repurchasing shares of companies. Ethersmart can redeem coins at a fair rate and then burn immediately to increase the value of each owner’s existing number of tokens. As the exchange burns the coin quarterly, and as a result, the maturity is very predictable. By burning the coin, Ethersmart reduces providing the long-term demand for the exchange’s coin, making it more attractive in the long term because of the growth of guaranteed coin value and the support of a beneficial reserve regime. for company.
Our roadmap starts from the 4th quarter of 2021 to the 4th quarter of 2022.
In the fourth quarter of 2021, burn 4,000,000 EtmIn the first quarter of 2022, we burn 4,500,000 Etm
In the second quarter of 2022, burn 6,500,000 EtmIn third quarter of 2022. We burned 8,500,000 EtmIn the fourth quarter of 2022, burn 10,500,000 Etm
ETM will reach $ 4,500 by 2022. The phase asserted its status as a financial conglomerate, as we expanded collaboration and ecosystem connectivity for ETM
Q1 / 2023 Listed ETM coin on the next 10 cryptocurrency exchanges. Open investment fund for Fintech blockchain start-up project in Dubai.
Quarter 4/2023 Launch of Blockchain digital bank in Dubai. ETM invest will reach $ 10,000 by 2023
We are looking at new strategies for a groundbreaking global outcome for digital currencies