Ethersmart, one of the most successful financial projects 2020-2022, continues to make great strides into the global financial market, gradually asserta its leading position in the field of financial investment on the Blockchain platform.
The next step in Ethersmart’s comprehensive inflation reduction strategy is the event of burning 34 million ETM tokens. This directly reduces the amount of ETM tokens circulating in the market and is expected to push the ETM price to a new milestone in the near future.
Token burning refers to the permanent removal of existing cryptocurrencies from circulation.
The practice of burning is very common in the field and quite simple. Token burning is a deliberate action taken by coin creators to “burn”, or remove a specific number from the total number of available tokens in existence in circulation.
So why does token burning affect token value? This is a classic strategy of Blockchain projects to combat coin/token price inflation that can only be effectively applied on Blockchain projects. For example, a project is valued at 100 million USD, the total number of tokens of the project is 100 million tokens, so the value of each token will be equivalent to 1 USD. If you hold 10 million tokens, you are holding 10% of the value of the company’s shares. If 50 million tokens are decided to burn, the total number of tokens will be reduced to 50 million tokens, then your 10 million tokens will account for 20% of the value of the $100 million project. That’s when each token will be worth twice as much as in the previous 2 USD. In addition to reducing the number of tokens, the token burning also demonstrates the long-term commitment of the management to the project, increasing investors’ confidence in the project.
The fewer tokens are available on exchanges, the higher their exchange rates will be. In fact, almost all cryptocurrencies or projects limit the number of coins issued. However, since the volatility of the cryptocurrency market is so great, it is very important to gradually reduce the number of tokens available so as not to inflate the entire market.
As this exchange burns coins on a quarterly basis, the maturity becomes very predictable. By burning coins, Ethersmart reduces the long-term demand for the exchange’s coins, making it more attractive in the long-term because of the growth of the guaranteed coin value and the support of the beneficial storage mode for the company.
The roadmap is implemented starting from the fourth quarter of 2021 to the fourth quarter of 2022.
Q4 2021 burned 4,000,000 Etm
Q1 2022 burned 4,500,000 Etm
Q2 2022 burned 6,500,000 Etm
Q3 2022 burned 8,500,000 Etm
Q4 2022 burned 10,500,000 Etm
Ethersmart aims at new strategies for a breakthrough result of the global cryptocurrency..
Token burning is a feature of Blockchain projects because tokens cannot be recovered when burned while traditional companies can completely issue more shares whenever they want. This is also the foundation of Defi – Decentralized finance, anti-inflation and completely transparent, over time the token value can only increase, not decrease.
This is a smart and bold move by the Ethersmart leadership team. How about you? Be a smart investor, invest in projects with a competent and transparent leadership team like Ethersmart.
Smart Investment – Bright Future.