Chirpley will be burning a total of 50,000,000 CHRP tokens, which represents 5% of the total supply.
This is a significant event for the Chirpley project, as it will help increase the CHRP token's value for all of our token holders. In addition, the token burn will help to reduce the total (circulating) supply of CHRP tokens, making them even more scarce. And it’s guaranteed to have a positive impact on the long-term price of the token.
But first, what is a token burn and how does it benefit the token holders
The token burn is a process in which a crypto platform removes currencies from circulation to prevent them from becoming worthless. This is considered equivalent to an airdrop under circumstances.
To put it another way, token burn is the act of burning a token such that it can no longer be used for any purpose (trading or otherwise). The asset will be sent to a specialized address whose private keys are not accessible to anyone.
Timelines on the token burn
After due diligence and evaluation of current and projected market conditions, the team has decided on burning 1% total supply each quarter for the next year.
03–10– 2022–1% of CHRP token — 10,000,000
Q1 2023–1% of CHRP token — 10,000,000
Q2 2023–1% of CHRP token — 10,000,000
Q3 2023–1% of CHRP token — 10,000,000
In total, 4% or 40,000,000 tokens burnt by the third quarter of 2023. The constant burn mechanism keeps a steady value of the token and bets for a long-term price rise.
The rest 1% (10,000,000) $CHRP tokens would be burnt through a buyback mechanism. Chirpley would on a quarterly basis do a buyback of tokens attached to its milestones and burn them. At regular intervals where Chirpley hosts events, releases an NFT, adds a new D’app, or when we reach a 100k user base mark on Twitter, etc.
Chirpley proposes the burning process also to provide the new investors with the reliability that their fund will not be affected by an over circulation. In a nutshell, a reduction in volume lowers the chances of spam attacks which leaves enough bandwidth for health transaction count on the network.