WOX token goes deflationary! A move in the right direction…
What is your favorite demand and supply improvement strategy? Well, let me guess – token burns? Yes, ‘burn baby, burn!’. Top cryptocurrency exchanges; Houbi and Binance burn hundreds of million dollars worth of tokens regularly. Many other cryptocurrency projects have adopted an exact strategy to improve the demand and supply metrics of their native tokens. While this has worked well for most of these projects, a number of them only realize at the end that a successful project is not just built by sending tokens to the furnace and screaming “burn…”
Generally, a good utility will drive demand; regardless of the supply, value will increase exponentially and relative to the demand a use case is able to command. A number of projects with huge token supply have seen rapid growth over the years; Cardano (ADA), Ripple (XRP), chainlink (LINK) to mention a few. Fair enough, these mentioned projects have no record of token burns. Value keeps growing due to the utility they present. But token burns can hasten this growth as it actively reduces supply and enhance the effect of existing demand. Token burn announcements have also driven demand in some cases; however, these are rarely genuine and in most cases are just impulsive buys by expectant investors.
True demand comes from utility marketed correctly. Token buyback and burns is another one of the numerous marketing strategies, a brilliant one to be frank. Burning tokens have proven to be a very efficient tool to sustain demand.
After a successful launch and commencement of liquidity farming, Wox-exchange has announced plans for their token buyback and burn program. Relative to other projects', Wox token buyback is a bit unique.
Wox token is backed by TRON, each Wox token in circulation is backed by one TRON. The token price is however, not pegged to the value of tron. The backing means WOX token’s value is maintained at the price of tron. The buyback program is meant to maintain this price. As the market recovers, WOX token can exceed this price as it is not ‘pegged’ to it. But in case of value reduction, the buyback program comes in. The team’s plan is in line with the projects initial proposition.
The buyback programs means that Wox token will have a rather constant demand and the burn means the token’s total supply will be ever decreasing. This works well for the tokenomics and the team’s activities will have a direct positive impact on the token’s price.
Wox exchange is evolving, this is another move in the right direction. WOX is a developing project with a responsive team piloting its growth. Be a part of something special. Learn more about WOXDEFI
Greetings @joelagbo ❤️💕❤️
Burning of WOX tokens is definitely a good move as this will help to reduce WOX token supply and also help to make the price or worth of WOX tokens more valuable. WOX to the moon 🚀🚀🚀
Thanks for sharing this great post with love from @hardaeborla and I hope you have a great day ahead ❤️❤️
To the moon and farther!
I must admit that I am so happy hearing about this great project. Wox is going to do wonders. Just take a look at how the price responded after the burn. I also speak about the burn in my post also. Nice content.
It's exciting whats coming. Thanks for taking time to read
hello @joelagbo,
token burning as a strategy is always good if there is a growing market, many projects lose credibility by not having a reliable token burning process. thanks for the information.
Thanks for taking time to read!
Sick of these burn stuff...almost everyone become token ecomists doing burns...
That stuff was damn hot at one time when Binance started BNB burns, and that drove price, still does. But that time this token burn stuff was new.
Now its so common...
I believe the utility of the token is to drive price...although major project ETH done burns, terra done burns... but they work for them because those tokens have high utility. You need ETH tokens for gas fees, that Blockchains is very highly used, similarly for terra luna coin is hot in demand for USt stable coin issuance and burn workks with this.
I think when coin has good utility, then burns work, else no, its a gimmick.
I am not a WOX exchange fan so I won't know...but its interesting now Steem is bringing value to Tron Blockchain indeed.
So steem people would go to tron to create projects, tokens etc...its innteresting.
Now that its free of justin sun, though not his influence and seems to be popular because the USDT tron network integration is helpful for withdrawing stuff with low fees, I feel Tron is well has some utility not shit coin or project for sure...
Its interesting.
I really hope all you WOX users benifit with WOX, making use of your idil TRON tokens earned in DEFI is pretty cool!!
hi @mintymile
In my opinion, buy-backs are nothing new. In stock market it had been taking place for years already.
The only new thing is that in crypto-space those tokens are being send to "null". Which gives more confidence that noone will ever use them and dump them back on the market.
You see ... and I'm not sure why so many people are hoping that UTILITY will drive the price.
Is price of gold or silver driven by it's utility? Are prices of tesla, IBM or any other stocks driven by utility?
Not really.
In my opinion, it is crutial to understand that it hardly matters if demand is coming from buy-backs and burs or is caused by investors. Or maybe some utility is allowing to bring more demand.
Demand is demand. End of story.
What matters is ensuring that demand will not be overpowered by supply (selling pressure). So on one hand it is important how many tokens are being issued into the market and how many are being hold by people.
Great example: HIVE - it's demand is so much smaller than amount of tokens being "printed" on daily basis. But price is growing. Only because majority of HIVE users do not want to sell.
That's what matters.
@crypto.piotr,
your right...utility increases demand right. Gold has utility as store of value, hedge against inflation or safe haven asset.
Also, sometime we have to sell and make profits right?... selling pressure will some, but overall in the longterm besides all that selling we have to be in profits.
That's possible only if that coin has good fundamentals and utility to keep being on demand!!
Utility drives value, yes. But still, there's need for some additional drives. Token burn has proven efficient over the years. WOX is a little different as the burn is to maintain the price peg.
Burning is an important feature for every project this will help in the growth of the project and the price of the token will also increase.
We have seen many mechanism that work on burning of the token just to keep the price stable.
This is great news of the project and I am sure this will bring more value to the project in the future. Great update for the investors and community for sure.
Hopefully, yes. Thanks for taking time to read
Hi @joelagbo
A very good strategy to maintain the price of the WOX token, no doubt that friend @xpilar is forward thinking , I hope it manages to consolidate for the benefit of all .
Thank you very much for sharing your publication
thanks for taking time to read!
Thanks for explicitly breaking down the new burn concept by wox exchange although there are other incentive means of increasing a token value burning is an ideal process for stabilizing price value.
@tipu curate 3
Upvoted 👌 (Mana: 2/5) Get profit votes with @tipU :)
Your post is manually rewarded by the
World of Xpilar Community Curation Trail
STEEM AUTO OPERATED AND MAINTAINED BY XPILAR TEAM
https://steemit.com/~witnesses vote xpilar.witness