WRX 2nd Burn event scheduled this week?
WRX is the native token of WazirX Exchange, WazirX is among the most trusted exchanges in India, backed up by Binance.
What is Coin Burn ?
Token Burning is a process in which a certain no of tokens is permanently destroyed from the circulating supply to lower down the supply.
It is an intentional action to provide incentives to the investors and regulate the supply of token/Control inflation.
The process of token burn is generally observed in altcoins and small coins to regulate its supply(Less Supply == Great Value) which indirectly benefits the investors and develops an interest for new investors.
How Token Burn Takes Place?
As we have discussed what is token burn, Let’s now discuss how it takes place, Token burns take place by removing some tokens from the total supply, companies usually mention the token burn process in detail in their whitepapers and how those token burns will be scheduled, But usually tokens to be burned are transferred into non-reversible wallet addresses where the private keys aren’t known to anyone, these wallets are known as “Eater Addresses” once token transferred into this addresses those token are irreversible and are referred to as burned.
Benefits of Token Burn ?
There are some benefits of token burning mechanism that’s the prospective to make it happen right, Some of its benefits are mentioned below
- Reduced Supply(Deflation).
- Price Increase.
- Buy-Back Mechanism.
- Attract Investors.
About WRX Token
WRX is a native token of WazirX Exchange, It plays a vital role in the WazirX Ecosystem.
WRX token is based on Binance Blockchain and has a total supply of 1 Billion.
Tokenomics of WRX token
WRX token comes with great use cases for the investors on top of it some of its use cases are :
- 50% trading fees discount on WazirX Platform with WRX token.
- Mine WRX tokens by performing P2P trades
- Token Airdrop for holders on a new listing.
- Voting Power(Governance)
- Pay Using WRX for new Listing.
WRX 2nd Token Burn Event
We have discussed all things about the token burn(what is it and how it takes place) and also thrown some light on the WRX token.
WazirX has mentioned a total of 100M(10% of total supply) token will be burned gradually in parts according to the trading volume accumulated by the exchange. Hence increasing its value and incentivizing its investors.
“WRX has successfully completed 1 Quarterly token burn on 5th July 2020. Where a total of 8,33,333 WRX token were burned “
Read more about 1st token burn here
WazirX has scheduled its second WRX token burn this week where some amount of total token burn i.e 100M will be burned according to the trading volume.
Token Burn is a good step towards providing value to the token and for attracting new investors to the project, Token burn has a great idea towards the sustainability of the project in long term preserving its value.