Burning DEL Coins and Issuance
Now we’re going to talk about coin issuance, why this value is so important, and what it’s responsible for.
Money issuance is the process of releasing monetary instruments into circulation. In the cryptocurrency industry, issuance is used in the meaning of releasing coins into circulation. There are two types: “current issuance” and ” ending issuance.”
Recently, the Decimal team published a list of added features in the network update. One of the features is burning coins for the native coin and for liquidity-backed tokens. Surely, token burning feature was added for a reason and such a complex development will be applied soon. Further, we will tell you how it will work.
These days, all financial markets are going down and this process has not left the cryptocurrency sphere untouched. If you are watching the market closely and reading the news that our team specially selects, then you know that the outflow of funds from cryptocurrency assets for June was the highest ever by $423 million according to CoinShares.
For the Decimal community, this is the first crisis and after two years of strong growth by all metrics, we can note a fairly large outflow. This has certainly had an impact on the rate, liquidity, and state of the coin in the market in general.
Any crisis is a difficult period, but it certainly shows the worth of the product. We, the Decimal team, are confident that we will build our product so credible during this time. Growing out of this crypto winter, it will appear like the Burj Khalifa tower amidst the snowy desert. We want to demonstrate our intentions and confidence by actions, not just words.
The algorithm of coin burning was planned by the developers at the beginning and was supposed to appear after the release of Decimal Smart Chain. Due to the situation in the markets, we decided to implement this anti-crisis mechanism much earlier.
So, what result would a user of the Decimal blockchain get?
1. Assurance that these coins are not on the market and will not be sold;
2. Equal distribution of coin issuance among users, not developers;
3. The smaller the issuance, the higher the price of the coin. This hypothesis was stated several times by our users, let’s check it on DEL.
The first burning of 10% emission will occur on 18.07.2022, the number of coins burned includes the fines of validators and fees for creating the ticker of coins. After that, we will repeat the burning process 1 time per quarter (3 months), announcing the amount of coins to be burned and the date in advance.