As the cryptocurrency market continues to heat up, more projects are resorting to burning tokens to increase value for holders. Uniglo, a new project launching soon, plans to take this further by burning a colossal amount of its unsold presale tokens in the next few days.
Burning is not new to the market, as Shiba Inu, Luna Classic, and Stellar have done it before. However, Uniglo’s several in-built tools with additional presale token destruction are far more intensive and massive, theoretically leading to higher returns.
How Uniglo Burns Tokens?
Uniglo is an asset-backed social currency operating as a decentralized autonomous organization (DAO). Using the GLO vault, the protocol acquires and stores valuable assets, such as large and small-cap cryptocurrencies, stablecoins, NFTs, and even digitized gold. This strategy stabilizes the token’s floor price and does not fluctuate with market conditions.
Besides the vault, Uniglo is distinguished by its intensive burning techniques. The protocol’s ultra-burn mechanism eliminates 2% GLO tokens in every transaction. Further, the community uses vault earnings to finance the buyback and burn tactic. Buybacks will occur in reaction to the market performance of the GLO token and will be entirely governed by the community.
Uniglo is in the last hours of its spectacular presale, and with the recent revelation that unused presale tokens would be removed, investors are scrambling to get their hands on GLO at the best possible price.
GLO will be listed on Uniswap on November 19 for $0.0165. This will give early backers a 65% interest rate on their first donations and enhance their loyalty to the company.
Shiba Inu
Shiba Inu is a popular dog-themed meme-coin devoted to building an active community with a rich SHIB utility. As a typical meme coin, SHIB was issued a massive supply of one quadrillion. Therefore, though the initial hype gave SHIB a lift, the latest crypto meltdown has badly harmed SHIB. And the team had to utilize burning techniques to limit the supply and extend its lifespan.
Currently, SHIB does not have a built-in mechanism for currency burning. Instead, investors must either transfer tokens to the burn wallet themselves, purchase goods from a company contributing a percentage of its revenue to the SHIB burn wallet, or deposit their Shiba Inus into the Shibburn portal in exchange for RYOUSHI tokens.
Luna Classic
Midway through 2022, when the Terra chain split, the original Luna became Luna Classic (LUNC), and the new token kept the name Luna (LUNA).
Due to Luna Classic’s lengthy road to recovery, the team had to take action to remain competitive. The Luna Classic creators have recently imposed a 1.2% charge on all Luna Classic transactions. Periodically, these taxes will be burned to lower the supply of Luna Classic and enhance its demand.
Additionally, Binance has shown support for the LUNC burn. The exchange destroyed around $1.8 million worth of Luna Classic. This burn comprised the exchange taxes (trading costs) for spot and margin pairs of Luna Classic.
Stellar
Stellar is a payment mechanism based on the concept of distributed ledgers. It enables rapid international transfers between any pair of currencies.
Stellar was initially launched with a 100 billion supply, but new XLM tokens are added to the network at a 1% annual pace, making it somewhat inflationary.
Stellar tokenomics and whitepaper have never included token-burning plans. However, as inflation became severe, the community decided to perform a one-time burning event to lower the massive supply.
The entire token supply was reduced to 50 billion, giving XLM a slight push.
The bottom line
While token burning is common among Shiba Inu, Luna Classic, and Stellar, their approaches are still quite far from Uniglo. Two specific in-built burning tools and the upcoming event of presale token destruction ensure the team’s dedication to the project’s long-term stability and success.
Learn More On Uniglo:
Join Presale: https://presale.uniglo.io/register
Website: https://uniglo.io
