Monthly WJXN token burn update
by Maryna Trifonova, Head of Content at Jax.Network
In our previous articles, we mentioned weekly burning ceremonies aimed at reducing the supply of premined WJXN tokens. We are glad to publish the results of the WJXN burning ceremonies that took place over the last month.
For those, who may have missed our recent updates, let us quickly remind you that we hold WJXN burning ceremonies on a weekly basis. Every Wednesday, we burn up to 500,000 WJXN tokens to reduce the total dollar value held in the OpEx wallet. Please note that we plan to burn no more than 11 mln tokens out of 16 mln allocated for the public sale, provided the 30-day moving average price goes up to a certain price.
As per our updated tokenomics, our hard cap is set at $16 mln, so all extra tokens making the hard cap exceed $16 mln will be burnt. How do we calculate the number of tokens that need to be burnt? If the last 30-day average token price times the total coins held in the OpEx wallet exceeds a total value of $16 mln, we will burn a maximum of 500,000 tokens during the weekly burning event to reduce the total $ value held in the OpEx wallet.
How many tokens were burnt so far?
During the last month, we had carried out five WJXN burning ceremonies. Each week we burnt a maximum of 500,000 WJXN on both networks. That makes the total amount of burnt coins 2,500,000 WJXN. Feel free to check it by yourself using this quick guide.
Why is it a good thing?
Burning tokens helps us to reduce the premine and offer a greater value for holders in the long run. So, the more tokens we burn, the less of them will be in circulation. And with the rise of demand for our tokens, their value will also increase. That’s why all WJXN holders should be interested in keeping the price up, as it will determine the number of coins that we have to burn. Conversely, if the price goes below $1, no tokens are burnt. And no new tokens can be created, even if, at some point, the OpEx wallet goes below $16 mln.
It is also worth mentioning that the coinbase reward for miners will be reduced in proportion to the new number of premined coins after the public sale. Overall premine is determined by the DEX 30-day moving average price. The premine will be determined by this price and will be between 24.5 to 40 mln. The same rationale applies to the coinbase reward. It will be between 12 and 20 coins per block after 5 years.
We burnt a total of 2.5 mln on each network during the first five burning ceremonies. It’s a reoccurring event that takes place every Wednesday throughout the period of our token sale, as long as the price increases.
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