Burn & Buy-Back Report: Q2 2023
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Before going into detail about the 5th quarterly burn and buy-back, we have a major update to announce regarding the burning mechanism.
Burning Mechanism Update: Introducing Transaction-Based Burns
We are pleased to provide an update on the burning mechanism for the Numbers Protocol and its native token, $NUM. Following thorough deliberation and extensive community discussions, we are introducing a new transaction-based burn formula that aligns with the increasing adoption and transaction volume on the Numbers blockchain. This update aims to establish a sustainable burn rate by basing it on the number of transactions conducted. The proposed formula strikes a balance between simplicity and the potential for future growth and scalability. The newly adjusted burn mechanism formula is as:
N_burn = min(max(N_transactions, 6M), 25.5M)
In summary:
- If quarterly transactions amount to less than 6M. We will burn 6M
- If quarterly transactions amount to greater than 6M but less than 25.5M. We will burn the amount based on the transactions
- If quarterly transactions are greater than 25.5M, we will burn 25.5M
With these projected values, our burn projections will be the following:
- 25.5M burned per quarter => 5 years to achieve 50% of all NUM (500M)
- 6M per quarter => 20 years to achieve 50% of all NUM (500M)
This new formula will be effective starting from Q2 of 2023.
6th Quarterly Burn & Buy-back update
Set for June 27, 2023, the results of the 6th Quarterly Burn & Buy-Back are the following:
A total of 6,000,153 NUM was removed from circulation; the total NUM circulation supply decreased from 410,946,543 NUM to 404,946,390 NUM (Coin Market Cap to be updated soon). This quarter, burnt NUM tokens were collected from different sources and were removed from the Liquidity lot. We will keep running the Burn & Buy-Back plan until we burn 100% of all the NUM (500M) and release all related burn activities in the quarterly Burn & Buy-back report.
Follow is the full detailed summary of NUM burning:
Token burnt for Transaction — 6,000,000 NUM
- Transaction committed on mainnet from March 27, 2023 to June 26, 2023: 186,374
- Total NUM burnt = min(max(186,374, 6M), 25.5M) = 6,000,000
Token burnt for consumption of Capture Credit — N/A
Capture Credits was introduced in May 2022 to the community, and The Capture Credit is an alternative way to facilitate network action in Capture App and save transaction time and cost. Every consumption of Capture Credit will result in transactions committed to the Mainnet; as the new burning formula has been concluded for all transactions on the mainnet, we will stop burning the consumption of Capture Credit.
Please refer to this article for how Capture Credits works in the ecosystem: Capture Credit Explained, All You’d Like to Know!.
Token burnt for DAO meeting -153 NUM
The 4th DAO voting was held on 27 June 13:00 UTC. The tallied results were : “23 votes in favor of the proposal and 10 votes against the proposal”. This meant a total of 153 NUM would be burnt. Please check here for Numbers 4th DAO meeting detail: The 4th Numbers DAO Meeting/Voting Result
Transaction information for NUM burnt
- Approximate value in USD: ~$ 176k USD
- Transaction ID (TXID) for NUM burnt:
Burnt 6,000,153 NUM, Tx: https://mainnet.num.network/tx/0x2695b665f978637a5b93b294317f7bc5b2e79204bf58e645ce4ac13e056d2abc
What does this burn mean?
The Burn & Buyback plan was introduced to the community on January 14th, 2022 as part of our end goal in tokenizing authentic photos ( including images and videos) to create a decentralized photo network in Web 3.0. If you want to learn more about how it works, please refer to the article: Numbers Protocol Asset & Deflationary Token Economy
This quarter, burnt NUM tokens were collected from different sources as described as above paragraphs and was removed from the Liquidity lot.
We will keep running the Burn & Buy-Back plan until we burn 50% of all the NUM (500MM) and release all related burn activities in the quarterly Buy & Buy-Back report.
Thank you very much for your continued support. We would not have gone this far without you. If you have any suggestions or concerns please contact: service@numbersprotocol.io. We will continuously grow the project and make Numbers Protocol the foundation of the future Web 3.0 world.
About Numbers Protocol
Numbers Protocol is the first asset-centric cross-network protocol and handles 6 billion gateway monthly traffic from 190 countries and is already being used and trusted by art, music, NFT platforms, metaverse, and is developing an application for AI companies to trace digital media provenance.
Products including:
- Capture App: The world’s first blockchain camera.
Allows users to secure photo and video provenance with on-chain integrity records, providing a transparent, immutable history of digital content. - Numbers API: Developers and enterprises can implement Numbers API to register photos and access their Web3 addresses and certificates.
- Numbers Search Engine: Google for digital media.
Boasting the highest multi-network asset coverage, reverse-image search, dedicated asset profiles and AI-powered similar image results. Provenance of digital media can be found– ideal for general queries and vetting.
The rise of AI has brought an unprecedented amount of data being generated and processed. Ensuring data traceability has become an increasingly important topic of discussion in the tech industry. Through collaboration and the development of innovative solutions like Numbers Protocol, we can ensure that the use of AI is transparent and responsible.
