Coin burning is a process of removing some cryptocurrency tokens from circulation to reduce the coin supply. Each coin has its own schedule for burning, or some may not have this process at all. Investors can check the burning schedule of each coin from its project’s whitepaper.
How do we burn the coins and where will the coins go?
By ‘burning’ the coins, they will be removed from circulation and transferred to the wallet that no one can access, including the owning company itself. (Wallet address: 0x0000000000000000000000000000000000000000)
Why should we have to burn the coin?
Since Bitkub Chain was launched, Bitkub Blockchain Technology has been experimenting with various projects in order to improve the system and implement mass adoption on the blockchain ecosystem. However, the fee was the key factor that obstructed the process.
To ensure that our goal of bringing the Bitkub Chain to mass adoption is achieved, we reduced the gas price per transaction to 10 times cheaper and brought the KUB coins down to 110,000,000 KUB to be in line with the reduced gas fee. This coin burning is the biggest reduction for the company reserve from 30% or 300,000,000 KUB in V1.0 distribution ratio to 9% or 10,000,000 KUB. This reserve rate is locked for 3 years before gradually unlocking each year. The goal of the whole process is to distribute the coins among investors and users, resulting in an ecosystem driven by the community.
How many Bitkub coins are there before burning?
Bitkub coin burning is scheduled for the 9th of August 2021. The burning is expected to reduce the coins from 1,000,000,000 KUB down to 110,000,000 KUB, meaning that 89% of the coins will be burnt.
What will happen after coin burning?
Coin burning and a 10x reduction of the gas price from 50 Gwei to 5 Gwei will enhance the balance as well as foster the mass adoption of the Bitkub Chain ecosystem.
This coin burning will not affect the number of coins that investors have as the reduction is done only to the company reserve.
You can find more details about coin burning at Plearn-D KUB EP.2: Coin Burning or about KUB and Bitkub Chain at https://www.bitkubchain.com/.
Bitkub Chain Official Facebook: https://www.facebook.com/bitkubchainofficial