$UDO Phase 1 Burn Has Begun
Why burn tokens?
When a project burns its token, it removes a certain number of tokens from circulation. Effectively, the tokens are destroyed and cannot be used again in most cases.
Burning tokens reduces the total number of tokens in circulation, reducing the supply of tokens in the market, without affecting demand.
In our case, as we are yet to start charging fees for our SaaS platforms, we’ve just burned 45,613 $UDO tokens. This is a win for our existing token holders as they now hold a larger percentage of total tokens on issue, given the total issuance number has reduced by 45,613 $UDO. You’re welcome!
Once we start charging our EP customers monthly platform fees, we will continue to burn tokens as per our Token Emission Program. This will eventually reduce total supply from 115mm tokens down to 92mm tokens.
How future token burns will work
In Phase 1 of this model, we will burn 60% of UDO fees collected through “Consumption Fees’’ on a quarterly basis and will continue to burn the fees collected at the same ratio until such time the overall token supply is reduced to 92mm UDO tokens.
After this point is reached, Phase 2 will commence where the “Burn” mechanism will turn into a “Recycle” mechanism, where no further tokens collected from “Consumption Fees” will be burnt, but rather 50% distributed to the “Reserve” to support ongoing development and network maintenance of Unido Core. The remaining 50% will be distributed to the Ecosystem Development Fund to continue subsidizing the growth of 3rd party applications in the ecosystem.
The amount of time it takes for this pivot point to occur will depend on the adoption rate of the Unido Enterprise Platform and Unido Core API.
To stay up-to-date on our burn process and to ask questions, join the Unido Telegram community.
About Unido EP
Unido EP takes the complexity and expense out of digital asset management for organizations with sophisticated corporate governance needs. Our patented, end-to-end platform seamlessly automates corporate governance and self-custody of crypto assets so you can securely store, manage and invest in crypto without massive overheads.
Unido EP comes with a web-based dashboard and a decentralized application (dApp) featuring a robust set of DeFi tools, easy-to-set-up authority regimes and iron-clad security. All of this is inside a complete digital asset management platform, built with financial institutions in mind but tailor-made for any organization or individual’s needs.