With efforts to buy back and burn CET, the governance token of the CoinEx Smart Chain (CSC) ecosystem, the project is expected to increase the value of the token and attract more new people to the ecosystem of CSC
CoinEx and ViaBTC’s Ecosystem
CoinEx is a professional cryptocurrency exchange service provider with global operations. CoinEx exchange was established on 12/2017 and is headquartered in Hong Kong. CoinEx is developed by elite staff in various fields such as Blockchain, finance, and services. CoinEx is a member of the ViaBTC ecosystem, including CoinEx Cryptocurrency Exchange, CoinEx Smart Chain (CSC), OneSwap Decentralized Exchange, ViaBTC Pool, ViaWallet Wallet, Investment Fund ViaBTC Capital investment.
CoinEx shares the reason to buy back and burn CET
Although most coins/tokens share similar underlying technologies in the cryptocurrency market, they will often be designed around different tokenomic models. Some varieties have a supply that increases over time, while others have a fixed supply. A handful of cryptocurrencies come with a decreasing total supply, or in other words, deflationary tokens.
Before the publication of the official report on BTC, Satoshi Nakamoto noticed that real-world currencies issued by governments often cause high inflation, which inspired him to develop a repository of real-world currencies. Alternative value storage is similar to precious metals but achieved digitally. . It should be noted that Bitcoin is deflationary because of a fixed supply, and the block reward halves every four years.
Deflationary cryptocurrencies like Bitcoin represent not only innovative blockchain architectures and cutting-edge consensus mechanisms but also a broader experiment in moving reduced long-term stores of value. From the real world to the cryptosphere.
The benefit of crypto deflation is usually that as the total supply and circulating supply decrease. Cryptocurrencies will become more valuable, and more users will notice and invest in them.
CoinEx chooses to develop its deflationary token through burning a certain percentage of tokens from the supply, buying back and burning some tokens, or buying back and holding the tokens. The most common method is to burn tokens manually. According to the CET value agreement, they will buy back CET every day with 50% of the income coming from trading fees and burn all redeemed CET at the end of each month until the total supply of CET is reduced to 3 billion. In the next phase, the exchange will continue to spend 20% of the transaction fee income of the redeemed CETs and continue burning until the remaining CETs are completely burned.
CET had an initial total supply of 10 billion, and through unremitting efforts, CoinEx bought back and burned about 6.3 billion CET. The current total supply is around 3.5 billion, according to data as of May 19, 2022. As more tokens are repurchased and burned, the price of CET has increased throughout 2021. CoinEx expects that through its further efforts in CET redemption and burning, the value of CET will continue to grow and attract more users to the CoinEx Smart Chain ecosystem.
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