Cryptocurrency exchange KickEX has announced the burning of excess KICK tokens and launched a deflationary model of its updated KICK v token.8.
The less, the better: the exchange gets rid of extra tokens
The KickEX cryptocurrency exchange announced several changes related to the internal KICK token, which serves as both an internal settlement tool and an investment tool. So, according to the official statement of the platform, the new smart contract of the KICK v. 8 token excludes the possibility of issuing new tokens. This means that KickEX will no longer be able to issue new coins.
The second key improvement was the automatic token burning feature for each transaction. In addition, the new version will have the possibility of staking. This means that all KICK token holders will now receive a percentage of each transaction involving the coin.
Read also: What is cryptocurrency staking in simple words
“At the first stage, each transaction will distribute 5% of the amount of the transferred tokens and they will be distributed among the KICK holders in accordance with their percentage of KICK ownership. In addition, each transaction will immediately burn another 5% of the tokens. These percentages will change later, but cannot be less than 0.5%. This guarantees holders a lifetime receipt of redistributed tokens and a permanent burning, which will now become part of the tokenomics of the KICK ecosystem, ” commented CEO and founder of the exchange Anti Danilevsky.
In order to accelerate the deflationary model, before the token contract is updated, the excess KICK tokens in the amount of 850 billion will be burned. Frozen tokens in the amount of 1.2 trillion will not be transferred to the new contract, that is, they will also burn. Moreover, the exchange of the old KICK token for KICK v8 will be carried out in a ratio of 100:1, which will reduce the number of remaining tokens in circulation to only one and a half billion.
Read also:” Frozen Tokens”: why do exchanges need them
“We have decided to burn and liquidate 95% of all existing KICK tokens, both frozen and not. In mid-July, the “test” tokens and tokens that were received by the KickEX exchange as payment of part of the trading commissions will be burned. During the replacement of the current token with KICK v8, the addresses that were previously received by FrozenDrop will not be transferred to the new token contract and will remain “overboard”. Thus, the current total token issue – 2,121,771,003,231 (2.1 trillion) – will be reduced to just 15 billion, which turns 95% of the destroyed tokens to more than 99.93%, ” explained Anti Danilevsky
Learn more about the process of replacing old tokens with new ones here.
Exchange-traded tokens have overtaken some cryptocurrencies in popularity
It is worth noting that exchange tokens, which were previously considered exclusively the internal payment unit of exchanges, are now becoming more popular than some cryptomonets. For example, the Binance Coin token issued by the Binance crypto exchange ranks fifth in the CoinMarketCap rating with a total market capitalization of $52 billion.
“Now we are seeing a local correction in the market. The BNB rate declined after other cryptocurrencies, including Ethereum and Bitcoin. The market has been growing almost continuously over the past few weeks, and the observed correction was quite expected. The further course of BNB will largely depend on the general situation on the market, as well as on the extent to which the Binance Smart Chain blockchain will actively develop. Many projects are now switching to Binance Smart Chain due to the low cost of transactions, ” Gleb Kostarev commented on the situation.
Among the most promising exchange tokens are also Huobi Token (ranked 42nd in the CoinMarketCap rating), Waves (ranked 65th in the CoinMarketCap rating), OKB — token of the OKEx exchange (ranked 95th in the CoinMarketCap rating).
How much you can earn by investing in exchange-traded tokens and cryptocurrencies, we told you here.
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