Burn mechanism

The burn mechanism

The burn mechanism of WinBit Casino is a mechanism designed to reduce the overall supply of its native token with each transaction that occurs on the platform and on chain. Specifically, with every transaction, a percentage of the transaction amount is permanently removed (burned) from circulation. In the case of WinBit Casino, the burn rate is currently set at 0.888%. In the near future the community will decide if the burn rate has to be changed or not with an community vote.

How does it work?

Let's say a user engages in a transaction within the WinBit Casino platform, whether it's depositing, withdrawing, or engaging in any other activity that involves the native token. With each such transaction, WinBit Casino automatically deducts 0.888% of the transaction amount and permanently removes it from the total token supply. This means that for every 1000 tokens that are being tranfered 8.88 tokens are permently removed from circulation. The tokens that are being burnt will come from the project’s treasury or will be bought on the open market by the project.

purposes of the burn mechanism

Token Supply Reduction

By systematically reducing the supply of tokens in circulation, the burn function helps create scarcity, potentially increasing the value of the remaining tokens over time.

Deflationary Pressure

Burning tokens creates deflationary pressure, meaning that over time, the total supply of tokens decreases, which may help counteract inflationary pressures and maintain the token's value.

Economic Incentive

Users may be incentivized to hold onto their tokens rather than continuously transacting them, knowing that a portion of each transaction will be permanently removed from circulation. This can contribute to a more stable and potentially appreciating token value.

Overall, the burn function of WinBit Casino's native token is a strategic mechanism aimed at managing token supply, incentivizing token holding, and potentially increasing the value of the token over time.