Dear Zeebu Community,
We are delighted to share a significant development that will have a profound impact on the Zeebu ecosystem. At Zeebu, our unwavering commitment to decentralization and sustainable value creation drives our decisions. With great pleasure, we announce the successful completion of ZBU token burn, leading to a substantial reduction in the ZBU Token supply.
ZBU Token Burn Details
In pursuit of an optimized tokenomics model, the ZBU token was launched with a deflationary model, which signifies that a certain percentage of the total ZBU Token supply will be burn periodically. This burn will safeguard ZBU's continued effectiveness as a trusted means of telecom settlement, counter the negative effects of cryptocurrency volatility, ensure a stable market presence for ZBU, and contribute positively to its ecosystem.
ZBU Tokens Into the Flames
Zeebu has completed the first burn of ZBU tokens, removing 236,863,773.8 ZBU forever. This equates to more than 4.7% of the total supply of Zeebu’s ecosystem token. Details are as follows:
🔥 ZBU burned: 236 million
💹 Initial Total supply: 5,000,000,000
💹 Total supply after burn: 4,761,874,012
💰 USD value: $723,640,989.50
📊 Percentage of total supply burned: 4.737275476%
⏰ Time of burn: Feb-02-2024 06:44:00 PM +UTC
Transaction ID: View on chain
What is Token Burning?
Token burning is a common practice in the cryptocurrency world. It’s a process where a certain number of tokens are permanently removed from circulation, reducing the total supply of tokens in the blockchain network.
In Zeebu, we have introduced the phoenix protocol, which automates the token burn process. This protocol sends a portion of the tokens to a public address known as the “burn address”. This address is inaccessible; it’s not associated with a private key, and as such, the tokens can never be used again. Once tokens are sent to this address, they are effectively “burned” or destroyed.
The primary purpose of token burning, more accurately referred to as token redemption, is not merely about stabilizing or increasing the token's value. It's fundamentally about reflecting the “consumption” of the token within the market.
When tokens are burned, it signifies that they have served their utility within the market and are now being taken out of circulation. By reducing the supply of tokens, the purchasing power of the remaining tokens may be preserved, assuming demand remains constant or increases. Token burning can also be seen as a tool for deflationary mechanisms. It's a strategic approach employed to manage token supply and combat inflation while maintaining decentralization.
In essence, token burning or redemption is a reflection of the token's lifecycle within the market, from its utility phase to its consumption phase. It's a strategic move that can potentially influence the token's value and purchasing power, but it's ultimately a part of the token's journey within the blockchain network.
What is ZBU Phoenix Protocol and Token Burn?
The ZBU Phoenix Protocol is an innovative auto-burn mechanism designed for the ZBU token. This protocol ensures a systematic reduction of the total ZBU supply every quarter, akin to Phoenix’s cycle of rebirth and renewal. The burn quantity is adjusted dynamically based on the current market price of ZBU and the consumption patterns observed during the quarter. The quantity of ZBU to be burned is directly proportional to the amount converted to a stable token on the platform. The protocol also allocates differential tokens from the accumulated burning pool to the ZBU CLUB for community growth and development. For more detailed information, you can the “ZBU Phoenix Protocol” section in the official Zeebu Gitbook or refer to the introduction blog on the Zeebu website.
We express our gratitude for your unwavering support as part of the Zeebu community.