It was a very busy week-end at work for me and I couldn't find time to create a post for CTPSB until now. It's a bit later as usual and I'm sorry about that.
How the big burn works
We have created a burn mechanisme for the CTPSB project by building a liquidity position in the diesel pool LEN:LENM. This pool distributes daily dividends in two main tokens, namely CTPSB and Swap.BTC. Every week, we burn the CTPSB tokens that we recieve and about once every two month we take the daily Swap.BTC earnings and purchase CTPSB tokens with it to burn them. That's what we call the big burn. This week in the big burn, we have managed to burn a total of 5.34 CTPSB tokens which represents the value of 18 Hive!
Burning brings value to CTPSB
Since CTPSB is a token that is backed by real money. Burning has a direct effect on it's value. The hive power on the @ctpsb account divided by the number of tokens in circulation defines the value of the token. The market maker sets then the orders around this price. When we burn tokens, the value of all the remaining tokens increases directly because of that. It's maybe not directly noticeable but in the long run, it has a direct effect on the token prize evolution.
The numbers of this week
Learn more about the CTP Swarm Booster:
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