team proposes burning mechanism to slow down the inflation rate

The team behind, one of the leading cryptocurrency platforms, has proposed a burning mechanism as a solution to slow down the inflation rate of its native token. By reducing the circulating supply of the token through burning, the team aims to maintain its value and prevent excessive inflation. This proposal is likely to receive positive feedback from users who are concerned about the long-term sustainability and value of the token. Overall, the burning mechanism is a promising solution to ensure the stability and growth of in the highly competitive world of cryptocurrencies. Set to Improve Economy, Lower Inflation Rate Through Burning Mechanism’s inflation rate is currently recorded at approximately 2.5%, with 26 billion CRO tokens in circulation and 646 million CRO tokens emitted by the ecosystem. However, the team has proposed a new burning mechanism that will lower the inflation rate to approximately 2.1%. This burning mechanism aims to sell the long-term pressure being built on the community and enhance the CRO token economy with robust security.

The proposed mechanism makes a slight change from the current mechanism, which has holders delegating their tokens to validators who then secure the chain by producing blocks based on how many tokens have been staked. The CRO reward is then distributed to holders, subject to the deduction of Validator Commission. Validators receive the reward based on their commission rate.

The difference between the current mechanism and the proposed mechanism lies in the construction of a Community Pool, which will collect a certain portion of the token for burning and lower the circulation. The funds in the pool will be sent to a Burning address after successfully concluding the governance vote.

The burning mechanism is projected to take out nearly a hundred million CRO tokens from circulation in the first year, thereby bringing down the inflation to the said rate. CRO holders will see the inflation come down to the mark of 2.1% against the current number of 2.49%. This is expected to improve the overall economy of and simultaneously reduce selling pressure in the long term.

However, CRO holders will also see a drop in staking rewards, with rewards dropping down to 11.5% in comparison to the current standing of 13.6%. It is, therefore, important for CRO holders to find more details about the future of the CRO token before taking any positions.

The development marks the first step in refining the economics of CRO tokens drawing inspiration from chains like Ethereum, Cosmos Hub, and Osmosis. has recommended that community members actively participate in shaping its future by engaging in productive communication with their validator.

In conclusion, the new burning mechanism by is a significant development that will enhance the security of the CRO token economy, reduce selling pressure in the long term, and improve its overall economy. Community members should participate in its development and seek more details before making any investment decisions.

Leave a Comment

Google News