Dear CronaSwap Farmers
It has been less than a month since the launch of CronaSwap, and we are thankful to all our users for being supportive and believing in us. Today, we are excited to share the news that we will kickstart the token burn process via two deflationary mechanisms — token buybacks and token burn.
For those who are not familiar with the term “token buybacks”, it means for a project to use its own resources to buy back some amounts of tokens at market price.
As for “token burn”, it means to intentionally remove a certain number of tokens from the circulating supply by sending it to a special address where the private key is not accessible. Once sent, the tokens are not usable anymore.
Our token burn process is to buy back the tokens from the market and burn them. This affects the dynamics of supply and demand and creates a deflationary effect. It will reduce the total number of tokens in circulation and make the tokens scarcer. This may benefit investors as it can result in the increase of the token’s value and continuous token burning helps keep a steady value of the token.
We will conduct the token burn process via 2 ways:
1. 0.05% of transaction fees from the platform will be used to purchase existing tokens from the market (known as token buyback) and we will remove it from it from the circulating supply (known as token burn). This schedule will take place once a week.
2. Next, we will be launching Initial Farm Offering (IFO) soon. This is to help raise funds for projects via CRONA-USDC LP tokens. After the LP tokens are redeemed, USDC will be distributed and CRONA will be burned.
With this in place, we aim to support the long-term value growth and price stability for CRONA holders. In future, we can also consider using the deflation mechanisms for new products.
You may view the details of our first token burn here: https://docs.cronaswap.org/tokenomics/crona-token-burning
Please follow the official social media:
Telegram : https://t.me/cronaswap
Twitter: https://twitter.com/cronaswap
Discord: https://discord.gg/YXxega5vJG
Medium: https://cronaswap.medium.com/
Telegram Channel: https://t.me/cronaswap_channel
