The first Xriba Burn Event took place on Monday, December 20, 2021. The burning of over 15 million XRA took place during the event, which was attended by guests as well as the president and member of the executive committee Federico Pacilli.
In this article, we will learn what it means to burn XRA, why the association has decided to do so, and how burning occurs and will occur.
What is crypto burning?
Consider burning a banknote; it will be irreparably converted to a few grains of ash and will no longer be used by anybody, having lost its purchasing power.
Similarly, burning cryptocurrency makes a given number of coins or tokens worthless and unavailable to anybody.
The approach entails sending a particular quantity of tokens to the MasterXriba smart contract through a specific transaction. As a result, those tokens vanish and can no longer be used or retrieved.
Why burn cryptocurrencies?
Burning a cryptocurrency reduces the total supply and the circulation of a coin or a token making it more scarce, decreasing the offer on the market.
This, combined with an original limited total supply is the most prevalent and well-established technique of making a cryptocurrency deflationary.
Stellar is the most effective example of a cryptocurrency burning method.
Denel Dixon, CEO of the Stellar Development Organization (SDF), revealed that the foundation would burn half of the XML currency supply on the Stellar blockchain in early November 2019. As a result, the price of altcoins increased by 25%.
Another famous example of a cryptocurrency burning method is BNB, the Binance Coin. As you can read on their announcement page “Every quarter, Binance commits to burning BNB, until 50% of the total BNB supply (approximately 100,000,000 BNB) is removed from circulation.” This burning occurs every quarter, it’s progressive and it’s believed to contribute to the growth of Binance Smart Chain.
The XRA token burning
With the establishment of the Association, Xriba declared the start of a new token economy for the MasterXriba (XRA) token in its White Paper (link). This token economy intends to increase the project’s visibility and support its growth.
The start of a regular burning activity, which began on December 20, 2021 with the first burning of all the tokens repurchased by the Xriba Companies in previous years, is a crucial component of the new token economy, which is available here (link).
Because the MasterXriba token is present on both BSC and Ethereum, it is required to burn the same number of XRA on both platforms. The burning process is then carried out via two transactions on the two relevant chains.
The burn.xriba.io page was established to make the token supply more comprehensible and to bring attention to the burning.
On this page, you can see how many tokens were burnt, how much value they had when they were bought back on the market, and how much they reduced the overall supply compared to the initial supply.
Furthermore, hashes of bruning transactions are available for everyone to study and verify.
Upcoming burning events
As anticipated, the event on December 20, 2021 was just the first in a series of events that will provide updates on the Xriba Association, the activity of the founder companies, and the announcement of new burnings.
To remain up to date on coming burning activities, we recommend that you subscribe to the Association’s telegram channel at https://telegram.me/xriba association.