Dear community, we are pleased to announce that the ICOM token burning campaign, which was announced in our latest podcast, has been approved by the entire project’s management team as a way to reaffirm our total commitment to the company.
The process will be activated on August 1st, 2023, and will be periodic, with the burning taking place every 1st day of each month. Token burning has become a popular strategy to control supply and demand and strengthen the economy of a particular token. In this article, we will explore the concept of ICOM token burning, an initiative designed to offset the token’s value loss and benefit the buyers and community participants.
What is the main objective?
The main goal is to compensate for the value loss experienced in the current bear market. By burning a portion of the tokens in circulation, the supply is reduced, aiming to generate an increase in demand and the value of the remaining tokens.
What is token burning?
Token burning is a process in which a certain amount of existing tokens in circulation is permanently removed. This action reduces the total token supply, which can have a positive impact on the remaining value of each individual token. By reducing the supply, we expect increased demand and relative scarcity, which could lead to a rise in the token’s price. In a way, it can be seen as a widespread airdrop for all the holders of the project’s tokens.
What will be the process?
Every month, we will burn 200,000 ICOMs, which will come from the tokens spent on purchasing products. If in a month the purchase of products is less than this amount, iCommunity will compensate by burning tokens from the corresponding team allocation until reaching the target of 200,000 ICOMs per week. This initial burning phase will be in effect until December 31, 2023, with the possibility of renewal in 2024.
Benefits of ICOM token burning:
- Increased scarcity and demand: by reducing the supply of ICOM tokens through burning, we create scarcity that may drive up demand. Buyers may see this as an opportunity to acquire more valuable tokens in the future, generating greater interest in token acquisition.
- Stability of value: token burning can help stabilize the value of ICOM tokens by minimizing extreme price fluctuations associated with market volatility. This provides buyers and users with greater confidence, encouraging participation in the token’s economy.
- Incentives for retention: implementing ICOM token burning can incentivize token holders to retain their tokens long-term. As the supply decreases, the value of the remaining tokens may increase, motivating investors to hold their stakes instead of selling quickly.
- Enhanced reputation and trust: ICOM token burning can be viewed positively by external buyers, showcasing our commitment to sustainability and token growth, thereby strengthening the project’s reputation and generating trust in its long-term viability.
In conclusion, this strategy will strengthen the token’s economy by creating scarcity, and we expect it to stimulate demand, providing an additional incentive for the entire ecosystem.
The iCommunity team.