Recently, we’ve got some questions why we will distribute all unsold/unallocated TDR tokens to those who will participate in the TDR Token Sale or Bounty Program instead of burning them. We thought it was a good question so we wrote a blog post about it!
Both burning and distributing tokens are beneficial for token holders. However, from an arithmetic point of view, token distributions have a major advantage over burning tokens: a higher share of tokens for the TDR token holders.
In the examples below it’s assumed that:
- Marc will buy 850 000 TDR (1%)
- Total Supply = 100 000 000 TDR
- There are 85 000 000 TDR for sale
- Only 62 333 333 TDR get sold during the token sale
Example (Token Burn)
Tokens Burned: 22 666 667 (85 000 000–62 333 333)
New Total Supply: 77 333 333 (100 000 000–22 666 667)
Marcs share in TDR: 1.099% (850 000/77 333 333*100)
Example (Token Distribution)
Tokens Distributed to Marc: 309 090 (850 000/62 333 333*22 666 667)
Marcs Tokens: 1 159 090 (850 000+309 090)
Marcs share in TDR: 1.16% (1 159 090/100 000 000*100)