Hyperion Token Burning Initiates
How did we design the HYN burning model?
Token burning mechanism (TBM) of a blockchain project supports permanent removal of a preset amount of tokens from circulation, similar to the token deflationary technique. We can perceive it as a smart way to regularly reduce the total supply of circulating tokens by code under a trustless environment, while the demand for cryptocurrency increases.
Therefore, TBM empowers the ecosystem by stabilizing and increasing the value of token with lowering amount of supply. In return, every token holder will get benefits with increased token value.
Each blockchain project can select or self-design a unique burning mechanism to serve its goal. For instance, Ripple burns equal amount of tokens as gas fee occurs in each transaction; USDT burns 1:1 token everyt ime when deposit is withdrawn from the capital account; while other exchanges allow token holders to burn platform tokens in exchange for goods or online services.
To simply put, the index and frequency against which to burn tokens overtime must best fit with the ecosystem. Some will use a one-off burn after the end of the ICO (initial coin offer) to remove unsold tokens from circulation. Others prefer to burn coins periodically at fixed or variable intervals.
Hyperion sets burning intervals to every 30 epochs against real-time Map3 data. Each time, HYN tokens will be permanently deducted from Hyperion Foundation account. Burning page will update the details for public users to access via Titan app, which will show the internal + external burning total, plus the remained token issuance. We’ll be able to see a declining HYN total in circulation overtime. We can also access the data via Hynscan explorer.
The key questions is how burning works to bootstrap the ecosystem? The answer lies in the index of Map3 node.
Hyperion ecosystem is designed to go through three distinct stages. The ecosystem will be bootstrapped by early stage token incentive to pass the network tipping point where the self-reinforcing network effect will take over to govern the network growth till the market is saturated.
TBM consists of two major components: The Int-Burn (Internal Burning) mechanism is determined by the total number of staked HYN in the Map3 network, and the Ext-Burn (External Burning) mechanism is determined by the total amount of Map3 services consumed. TBM is designed to catalyze the growth of the ecosystem by changing the demand-supply dynamics and thus the value of HYN.
The native token of Hyperion is HYN. The total issuance of HYN is 10 billion. TBM will cumulatively burn 9 billion HYN overtime, with the eventual sum of HYN capped at 1 billion with no token inflation.
By deflating the token and adjusting the supply-demand dynamics, token value will be increased. The more active the network is, the faster tokens will be burnt and the higher value for each. Communities hosting nodes and using map services will both speed up burning.
As each new scaling period occurs, the scaling out and up will burn more HYNs. The scaling cycle will happen every three months during the first year to catalyze the growth of the ecosystem.
The 1st burn, also known as “genesis burn”, will deduct 510 million HYNs from Hyperion Foundation account. The amount is calculated based on V0.8 Map3 node data, separate from mainnet Map3 nodes burning. These nodes were running before the mainnet launch, and reached deadline before the mainnet migration (27th Oct).
The 1st burn will be calculated by the staking amount of each node, and the corresponding lock-up period. Total 1st burn equals to the sum of each node staking * period (month).
Pls refer to the V0.8 Map3 node details below:
For instance, a V0.8 Map3 node with 1 million staking for 90-day lock up period, the burning will be 3*1 million= 3 million HYNs.
a V0.8 Map3 node with 550k staking for 180-day lock up period, the burning will be 6*550k=3.3 million HYNs.
As the graph shows, currently there’re 58 nodes with one million staking each, including 57 for 6-month lock-up period, and 1 for 3 months. The remaining 50 nodes have staked 550k HYN for 6-month. As a result, the total genesis burning will be 510 million HYNs.
By the end of this month, we’ll launch the mainnet node burning amount for the first 30 epochs.
Be part of our community!
🎙️ Follow us on Twitter: https://twitter.com/HyperionHYN
🎙️ Join our Telegram: https://t.me/HyperionOfficialHYN
🎙️ Download Titan App from website:https://www.hyn.space/
🎙️ Check blockchain explorer:https://hynscan.io/
