Cryptocurrency market continues its downward trend. altcoin platform put to vote a proposal for a burn to support the price of its token.
The local community of Bancor, an Ethereum-based decentralized exchange (DEX), will vote on a proposal to destroy a significant portion of the protocol’s own altcoin, Bancor Network Token (BNT), in hopes that said token burning will bode well for the price.
Bancor Community Votes on Bancor Network Token (BNT) Altcoin Burn
The details of the proposal opened for voting for VBNT holders are as follows:
“DAO [merkezi olmayan otonom organizasyon] Its members stated that ‘burns’ have a psychological effect on market participants and a similar effect could be experienced if such an experiment is allowed.
Therefore, this proposal is voting for a one-time burn of 1 million BNT tokens once enough resources are accumulated in the Bancor vault.”
The proposal adds that if the proposed move has the desired effect on the price of BNT, the DAO will strive for more token burns. vBNT is a management token issued to users who invest BNT in Bancor liquidity pools.
Token burning is a mechanism that changes supply-demand factors in favor of price increase by removing a certain number of coins from circulation.
Earlier this month, the Luna Classic (LUNC) altcoin was on the rise in anticipation of a community-approved plan to reduce its over-inflated supply. The world’s largest cryptocurrency exchange Binance burns a significant portion of its native cryptocurrency BNB every quarter.
Voting on Bancor’s token burn proposal will end on September 28. At the time of this writing, 99% of the votes were in support of the destruction of BNT when the total amount collected by Bancor Vortex in the v3 vault reached 1 million.
*Not investment advice.
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