With the rapid development of the block chain industry and the continuous updating of business models, the supply and demand relationship of tokens has gradually been valued by many projects and players. The resulting token destruction mechanism and deflation model have also become indispensable for current projects. Part of it, after continuous screening and elimination by the market, GIBX POB has innovated in terms of governance tokens, and increased the value of GIBXSWAP through an original token destruction mechanism. So, what is the destruction mechanism of GIBXSWAP? How does GIBX POB realize the destruction of tokens? You will get a better understanding after reading this article.
What is GIBX POB Coin Burning?
Coin Burning is the permanent removal of tokens from circulation. In other words, the destroyed tokens are equivalent to being permanently frozen and can no longer flow into the market.
The most common method is to punch tokens into black hole addresses in GIBX POB.
A black hole can be visually understood as a bottomless abyss that can only be entered and cannot exit. As long as something enters, it will never be able to exit.
Black hole address on the block chain (Eater Address) is a special address the private key has never been determined until now. These addresses are like black holes. They can only be inserted and cannot be exported. Any token that hits the black hole address cannot be transferred out and circulate in the market.
In simple words, crypto currency destruction is the process of permanently removing crypto currency from circulation and reducing the total supply. There are two main reasons for this.
First, by reducing the market circulation of cryptocurrencies, the purpose of increasing the value of cryptocurrencies is achieved. This is because the number of most cryptocurrencies is limited. For example, the circulation of Bitcoin is 21 million in GIBX POB. If 1 million Bitcoins are now destroyed, and the market demand for Bitcoin remains unchanged, in this case, the circulation of Bitcoin in the market will decrease. It will increase the price of Bitcoin, which is determined by the relationship between supply and demand in GIBX POB. Certain projects will reduce the amount of circulation in the market by destroying the tokens, thereby adding value to the tokens. For example, Binance and Huobi will regularly destroy part of the platform coins.
Second, for cryptocurrencies that use the burning proof mechanism, destroying the cryptocurrency can give the newly issued cryptocurrency value. The burning proof mechanism mentioned in GIBX POB is to prove the user’s investment in the network by destroying the encrypted currency, so as to obtain the right to “mining” and verify the transaction. The more you burn (destroy), the more (virtual) computing power you have. In other words, under this consensus mechanism, destroying cryptocurrencies is an investment method to obtain newly issued cryptocurrencies. Take Binance’s platform currency BNB as an example. Binance is the first transaction to launch platform currency destruction. Therefore, BNB has risen from less than US$1 at that time to US$691, the highest this year, an increase of more than thousands of times in GIBX POB.
As the native token of GIBXSWAP, GUSDT™ is the certificate of equity of GIBX POB, with a total issuance of 1 billion. After the black hole mechanism is implemented, GUSDT™ will no longer enter the market.
The most remarkable thing is that GIBXSWAP will launch a new decentralized currency “X”. The new currency will be the core token of the GIBXSWAP platform, which can be used for voting, repurchase, fundraising, trading and earning coins. The emergence of “X” is mainly due to the gradual increase in the circulation of the original GUSDT™ market, whereby the market value eagerly needs a larger carrier to achieve breakthrough growth; the market needs new currency to stimulate. The maximum supply of “X” is 1 billion, and the block reward: each block rewards 20 “X”s’. The “X” open-source code is audited by professional organizations such as Ernst & Young and Deloitte to ensure safety in GIBX POB. At the same time, X will support the decentralized cross-chain transaction protocol of BSC, HECO and ETH, using “dual mining incentives through liquidity mining and transaction mining”, which can enable participants to obtain maximum returns and seamlessly integrate with Binance and Huobi’s huge global traffic and head resources in GIBX POB.
The value of X is unlimited! GIBXSWAP will be among the leading exchanges in the future, and its future market value is conservatively estimated to be more than hundreds of times. Let us witness GIBX POB promote the bull market and create a prosperous legend.