The project has adopted a deflationary tokenomic model to ensure network sustainability.

A new blockchain project called Archethic has become the first project to burn 90% of their total token supply — within just 6 months of launch of their Mainnet Beta.

 

The unprecedented mass burn of the $UCO token is a decision made in order to ensure the long-term sustainability of the project, based on the analysis of simulations comparing the circulating supply of their token to the future fully diluted supply. The simulation found a divergence from market standards which was affecting investor trust.

“Our commitment, first and foremost, is to the self-sustenance of our network without compromising trust,” said Archethic CEO Sebastien Dupont. “We have big goals of seeing this blockchain being real-world use, and we won’t risk anything which might compromise that.”

With an initial $UCO token supply of 10 billion, Archethic is left with 1 billion $UCO tokens post-burn, which have been redistributed to ensure a deflationary tokenomic model. Cryptocurrency tokens that have a permanently limited supply, such as Bitcoin, are deflationary by nature. This ensures the token will never be affected by inflation, which is something that plagues all fiat currencies that are repetitively minted by their issuing governments.

A look at the tokenomics breakdown

The new tokenomics for Archethic ensures a controlled average annual inflation rate of 10.93% until 2030, after which inflation will be reduced to just 0.5% until the year 2080. At this point, no more tokens will be made…


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