Initiating WOX token burning
Hello STEEMIT community in general, as you all know, we are working on growing our project WOX-EXCHANGE. From the beginning we have maintained the idea of being able to keep the price of the WOX token stable, not to go below the price of a TRX. And if this should happen, a token burning would be performed with the intention to bring the price back up.
This is what we want to talk about at this very moment, to show how this project works, which we are building step by step with the intention of making it more than self-sustainable over time and that all our investors feel secure in it.
We would like to bring up here part of the text in which we explain how it works:
"WOX is backed, not pegged.
Each WOX is backed by 1 TRX, not pegged to it. Because the treasury backs every WOX with at least 1 TRX, the protocol would buy back and burn WOX when it trades below 1 TRX. This has the effect of pushing WOX price back up to 1 TRX. WOX could always trade above 1 TRX because there is no upper limit imposed by the protocol. Think pegged == 1, while backed >= 1.
You might say that the WOX floor price or intrinsic value is 1 TRX. We believe that the actual price will always be 1 TRX + premium, but in the end that is up to the market to decide." Source
We have created the account: @wox-burns, with the immediate purpose of starting to burn WOX tokens.
To make this better understood: the purpose of token burning is to reduce the circulating supply of the token, literally, by disappearing it, and in this way we can see that a basic law of the market applies, the less quantity of a specific thing (WOX token in this case) the higher its value tends to go up, and vice versa.
This is how we have started with this first token burning process, and it can be seen in the following images.
A total of 37202 wox have been burned recently. Which is equivalent to $2630
In this way, the price of the WOX token was balanced at par with the TRX. Soon, we will be reporting much more of our progress, which is always for the benefit of all.
As always, if you have any questions, please feel free to contact us. We invite you to join our discord channel:
Official WOX FI discord channel
I do love some good token burns! Burn baby burn!
Nice that you like it
Hi @wox-exchange
This is definetly good direction. One that all WOX token holders will appreciate and approve. I myself am holding to my bags of WOX tokens without any plan to sell them in upcoming months to avoid creating selling pressure at such an early stage of the project.
Hopefully token burns will allow to stabilize price.
Yours, Piotr
I hope all our investors see the benefit of token burning
It's great this way of seeking to balance the economy. It's a constant, automated process, so that the price is maintained. Very good.
Thank you @josevas217
Good to ensure long term stability of the project!
Yes, we want stability for all our investors and we want to show that we are a long-term project
This is great! I was wondering why the price went up today... buyback happened!
Question.
We have to do it manually and more wox-tokens will be burned in the future, maybe every week or month
hello @wox-exchange
This is good news that will help stabilize the price and show that the company is delivering on its promises to raise the price to at least the value of TRX. This will give more security to investors in the medium and long term.
Thank you @dgalan
This is wonderful I must admit. I love the team here, you guys are wonderful.
Thank you @tfame3865
Burning creates a constant demand for a token and improves its long term value. Good move!
thank you @joelagbo
The main disadvantage of all cryptocurrencies and tokens is their inflationary nature. Cryptocurrencies are extracted by mining, or their number increases due to stacking. All this is equivalent to printing traditional money. What happens when new money is printed? They become more, that is, the supply of this currency increases and it depreciates.
That's why burning WOX token is great news for me. This means that despite the high interest rate for investors, there is a mechanism to combat high inflation. It is not so important how many tokens will be burned, the very fact of the existence of such a mechanism is important. This will attract new investors who will buy the WOX token, increasing the demand for this asset and increasing its price.
I invested in this project in the first days of its existence, then I increased my investment several times, and I plan to do so in the future, if the situation in my country allows. I consider this project promising, and with each new step it confirms this. Thank you for a wonderful job!
Thank you, it's nice to hear that you have faith in our project and want to invest more.
I hope you and your family are doing well and the war will soon be over.
Thanks. It is the war that encourages investment in what is unlikely to depreciate after some time, and if lucky, it will make a profit.
A method to burn always is a good thing to keep under control the economy, great job
Thank you @alejos7ven
Well done
Thank you @penyaircyber