SRK Buy Back & Burn: How It Works and Why We’re Doing It
SRK Buy Back & Burn: How It Works and Why We’re Doing It
DNakaMotooOfOurTime 11th, December 2020 (5 minutes ago)
Cryptocurrency
SparkPoint Innovations will help build a better future for the people in terms of mobile payments, remittances, exchanges, gaming, etc.
Today, let us learn what is a buy back and burn, how it works, and what are the benefits of the SRK Buy Back and Burn program to the SparkPoint community.
What is a Buy Back?
In cryptocurrency, buy back happens when a cryptocurrency company buys its own token to raise demand. Fewer tokens on the market mean higher demand, hence driving the value of the tokens upward. Cryptocurrency buy backs are beneficial for three reasons: 1) Buy backs signify a profitable cryptocurrency, 2) Buy backs are more profitable than dividends, and 3) Buy backs increase the value of a cryptocurrency. Read more 3 reasons why crypto investors like buybacks — OpenLedger DEX.
What is a Coin Burning?
Coin burning is the process where cryptocurrency miners and developers can remove tokens or coins from circulation which slows down inflation rates or reduces the total circulating supply of coins. The act of burning effectively removes tokens from the available supply, increasing its relative scarcity. Read more Meet the Newest Cryptocurrency Trend: Coin Burn | The Motley Fool.
In order to remove a token from circulation, miners and developers obtain these tokens and send them to specialized addresses that have unobtainable private keys. These tokens are sent to space outside of the circulating supply. Without access to the private key, no one can use these tokens for transaction purposes, thus; it becomes unusable for all activities. Read more Cryptocurrency ‘Burning’: Can It Manage Inflation? (investopedia.com)
SRK Buy Back and Burn Program
As outlined in the company’s whitepaper, SparkPoint uses 10% of its quarterly profit to buy back and burn SRK tokens every quarter to reduce the overall circulating SRK token supply. This is to ensure the stability of the SRK token value in the market.
The biggest SRK Buy Back and Burn event are scheduled for December 30, ever since the program started in June 2020. We’re going to burn 368M+ SRK tokens, worth $375K+ as of writing, which will reduce the total supply of SRK tokens to 14B. We intend to continue the process until the SRK token supply reduces to 10B.
Conclusion
Though only a few cryptocurrency projects implement buy back and burn program as of the moment, this approach is beneficial for cryptocurrencies to sustain its long-term growth and price stability in the digital market.
SRK has a scheduled Buy back and Burn coming up in 19 days.
Learn more about SparkPoint and SparkDeFi from the following links:
SFUEL Private Sale Whitelist: https://forms.gle/ML8ZENTmEq7z3daJA
SparkPoint Website: https://sparkpoint.io/
SparkDeFi Website: https://srk.finance/
SRK-ETH on Uniswap: https://srk.sh/uniswap
Trade SRK: https://srk.sh/trade
Telegram Announcements: https://t.me/sparkpoint
SparkDeFi Telegram: https://t.me/SparkDeFi
SparkDeFi Twitter: https://twitter.com/SparkDeFi
SparkDeFi Facebook: https://www.facebook.com/SparkDeFi
SparkDeFi Instagram: https://www.instagram.com/sparkdefi/
LinkedIn: https://www.linkedin.com/company/sparkpointio
GitHub: https://github.com/sparkpointio
CoinMarketCap: https://coinmarketcap.com/currencies/sparkpoint/
Source : https://medium.com/theecosystem/srk-buyback-burn-how-it-works-and-why-were-doing-it-c1a1c0470c51?_branch_match_id=748791914508502558
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