As most of you know already, The Burn Token is a self-annihilating digital asset. With each transaction of BURN, 1% is destroyed!
To stimulate this deflationary process and reward the community we have launched the, ‘EARN BURN PROGRAM’ today the 10th of July 2019.
Each day whether it is inter-account transfers or trades for BURN via a Uniswap smart contract, BURN token is changing hands. This stimulates the deflationary component of BURN with 1% of these movements being destroyed from the total supply. To stimulate this deflationary model even further and speed up the scarcity of BURN, the team would like to reward our community with our secondary token offering, Cinder (CNR).
BURN never had an airdrop! Every BURN was traded from the start using a fixed price of $0.0011494 utilizing the 0x protocol until $300 was raised. At that point we added BURN to Uniswap, and solely allowed the community to buy/sell BURN and effectively set the price.
To add liquidity, you just deposit an equivalent value of ETH and BURN into Uniswap’s BURN/ETH exchange contract. The exchange rate was at our initial fixed price and has adjusted over time through arbitrage.
Until you remove your liquidity (which you can do at any time), you earn a proportional share of Uniswap’s 0.3% fee on any trades made between the pair of BURN & ETH you contributed. Please note that if BURN price increases then you effectively selling BURN for ETH and visa versa in relation to the trade and your proportion to the pool.
We will reward the same amount of BURN that is destroyed to addresses that contribute to the BURN/ETH liquidity pool, on a daily basis. The higher the pool liquidity the lower slippage and less effect a larger trade can have on the BURN price. When a community member is part of the pool, they are more incentivized in this project, not only for earning more BURN, but the longevity of BURN as they have invested interest in its ultimate success.
When one adds liquidity, a token is allocated to your address which indicates your percentage stake in the pool, the ‘Uniswap V1’ token. This will be used to determine which addresses qualify to earn Cinder, and the subsequent weights. To qualify you need to have at least 1% of the pool, excluding the BURN wallet creation address.
Daily the BURN team will sell the equivalent of BURN, which was destroyed the day before and buy Cinder. This Cinder then has ETH being added on a daily basis to it’s pool and is then sent to the addresses who added liquidity. As Cinder is also backed by ETH, it can be sold at anytime for BURN and/or ETH.
Here is a simple example:
5,000 BURN tokens were destroyed yesterday
1 BURN = 10 CNR (Current Ratio)
We sell 5,000 BURN and receive 50,000 CNR
The pool has three contributing addresses:
Address 1 = 50%
Address 2 = 30%
Address 3 = 20%
Thus address 1 will receive 25,000 CNR, address 2 will receive 15,000 CNR and address 3 will receive 10,000 CNR.
Here is a link on how to trade BURN and add liquidity to the BURN/ETH pool using Enjin mobile wallet.
Happy BURN trading!!!