Introduction
Following the introduction of Branded Coins (BCO) and their unique buyback and burn mechanism (BBB), XDB Chain aims to enhance the real-world utility and supply-demand dynamics of the XDB coin through its powerful blockchain platform. This mechanism includes an allocation of up to 2.5% of each new Branded Cryptocurrency’s supply for regular buybacks and burning of XDB coins, fostering scarcity and providing incentives for all stakeholders. This approach strengthens the economic viability of the XDB Chain network. XDB CHAIN has officially launched the first BCO and triggered the very first BBB BURN event (#1) in the history of XDB CHAIN, marking a key milestone for the next development phase of the project.
Burn Event #1
The first burn event took place on July 1, 2024, following the successful Token Generation Event (TGE) of CBPAY. CBPAY is the first BCO launched on XDB CHAIN. This event, complaint with BBB rules, committed to burning 62,500,000 CBPAY tokens over the first quarter. The BBB mechanic worked as follows: with an average sales price of $0.000596 per CBPAY since its launch, the 62,500,000 CBPAY tokens generated $37,243.75. The funds were then used to repurchase XDB at an average price of $0.000361, resulting in 103,168,282.55 XDB being burned. This built-in strategy aims to manage the CBPAY supply over the next four years through 16 events (15 remaining), assuming CBPAY’s market cap remains in the Tier 1 range of 0–50 million dollars. If the market cap of CBPAY increases relative to XDB, the BBB process will burn a higher share of XDB coins, also potentially increasing the sale of CBPAY beyond 62,500,000 by quarter to exhaust the 2.5% pledged supply.
Summary of Burn Event #1:
Following the introduction of Branded Coins (BCO) and their unique buyback and burn mechanism (BBB), XDB Chain aims to enhance the real-world utility and supply-demand dynamics of the XDB coin through its powerful blockchain platform. This mechanism includes an allocation of up to 2.5% of each new Branded Cryptocurrency’s supply for regular buybacks and burning of XDB coins, fostering scarcity and providing incentives for all stakeholders. This approach strengthens the economic viability and attractiveness of the XDB Chain network.
Official BURN Address and Impact on Supply
The balance of the official burn address has been updated following Burn Event #1, the first BBB event on XDB CHAIN after the launch of CBPAY. The burn address now holds 1,128,798,262.5770323 XDB CHAIN native coins (XDB), reducing the total supply by 103,168,282.55 XDB to 18,871,201,737.42297 XDB. You can view the transaction details here.
The newly created token disclosure page on xdbchain.com provides comprehensive information on tokenomics and supply reduction. This page is integrated with the XDB CHAIN explorer, ensuring transparency and auditability for the XDB CHAIN community. The XDB token supply can be tracked in real time at https://explorer.xdbchain.com/circulating-supply.
This move reduces both the circulating and total supply, transitioning from 18,974,370,019 to 18,871,201,737.42297 XDB Chain native coins. Some tracking websites may only reduce the total token supply and not the circulating supply, as they do not consider Treasury tokens in circulation.
Recap of Official BURN Parameters:
Enhanced Digital Scarcity
By submitting transactions with zero weights and thresholds, developers can invalidate keys, including the master key, preventing further transactions and token creation. This feature, primarily for developers, can significantly impact the overall supply of the cryptocurrency. Detailed information on this feature is available in the official XDB Chain documentation with the launch of XDB Chain v19.
Creating a “BURN” Address (Technical Instructions)
Developers can create a “locked address” to burn tokens. Once transferred, these tokens become unusable in any future transaction. This process involves setting the weights and thresholds to zero, creating a scenario where all keys, including the master key, become invalid, effectively locking the account forever.
Conclusion
Burn #1 is now completed! The next event is Burn #2 and is scheduled for October 1, 2024, at 2 PM UTC.
