Shopping.io burns 151,200 $SHOP in its first burn cycle
This burn event, occurring on November 11th 2022 01:08:59 PM +UTC, marks the beginning of Shopping.io’s monthly burn initiative where the project burns a percentage of its platform earnings in order to fuel its tokens deflationary properties.
What does the burn mean for $SHOP holders?
The burning of $SHOP tokens will directly decrease the circulating supply of the token due to the unequal ratio of tokens minted to tokens burned. This will in turn distribute the tokens market cap over a smaller amount of tokens. Uniswap’s $SHOP and $ETH liquidity will also be temporarily affected during the process of the burn as will be explained below, with the effect being an initial, equal decrease in both sides of liquidity, followed by a further decrease in the $SHOP side of the liquidity and the returning of the $ETH side of the liquidity to its original amount.
How will the burn work?
Frequency: Once a month
Amount of $SHOP burned: 151,200
Approximate value in USD: $4,023.40
The burn process will occur as follows. Initially a portion of both sides of $SHOP’s Uniswap liquidity will be pulled at a ratio of 1:1. Following this, the $SHOP pulled from the liquidity pool will be burned with the use of a null address. The remaining $ETH that was pulled will be used to buy back $SHOP tokens though Uniswap, in essence returning the $ETH that was pulled back to the liquidity pool. Finally the $SHOP tokens purchased will be placed within the company treasury.
- The date of each month’s burn cycle will be random and will not be publicly available to avoid gamification of the event.
- Until now $SHOP Backs have been distributed from the company treasury, this however will now shift to occur via Shopping.io’s token minting feature.
- A separate mint wallet will now be designated to allow for full transparency of the minting process and ease of tracking.
- Token minting for $SHOP Back distribution will occur once a month
Total $SHOP minted: 27,839
Total $SHOP burned: 151,200
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