So Coin Burn is a deflationary process built into Cryptocurrencies. The fundamental concept of Cryptocurrency is that there is a limited quantity and that supply continues to decrease over time. Let’s suppose Bitcoin has coins that don’t require mining or proof of work, and Burn is one of the mechanisms that guarantees supply is decreased as demand increases. So today, when people trade more on Wazirx than last year, the utility of WRX has increased, and with that, we also burn a portion of WRX, which essentially means that these tokens are out of circulating supply, and where they are out of circulating supply, we see scarcity, which is why the idea of Coin Burn was created.
What is WRX Coin Burn ?
So, technically, to understand how a burn works, you must first understand that what we want to do is take that portion of WRX out of supply because it should not be credible. So, in a burn, you simply send tokens to a wallet address that no one has the password to and is almost lost out there, so it is out of circulating supply that you do.
Why is Wazirx WRX token being burned?
As previously said, this is a deflationary process, and it is the fundamental concept of Cryptocurrencies, and they must be afraid. The reason for the burn is that whenever a project burns, these tokens are sent to an address that no one has a password for in the Fiat economy what we see is supply of any particular form of money keeps increasing. In Crypto it has to keep decreasing right so that’s the reason for the burn. The way that happens is that whenever a project burns, these tokens are sent to an address that no one has a password for in the Fiat economy what we see is supply of any particular form of money keeps it’s just an address that will become inactive, resulting in a substantial reduction in circulating supply on exchanges with investors.
Why should you be excited about the WRX Coin Burning Event?
In an ideal world! The first important thing to remember is that the WRX is a utility token. As a result, more traders are holding it when they wish to trade more, indicating that Wazirx as a platform is expanding. Count the number of tokens that have been burned. The INR value of the burned tokens will reflect the development of Wazirx as a platform, and you will be holding a utility token for this platform. As a trader, of course, decline indicates no it is most concerns, but when you look at WRX coin burn or any burn say you should measure the amount of phrases that occurred. Take a look at what was smoldering last quarter. What is the burn for this quarter, and you’ll see how quickly Wazirx as a platform or the usefulness of WRX grows, so that’s basically it.
Wazirx Coin Buring Events
WazirX successfully completes the 2nd WRX coin Burn event on October 13th, 2020. This burn will take place during the just concluded quarter of July to September 2020.
A total of 3,333,333 WRX (about $247, 00,000 INR or $327,833 USD) were burnt in the 2nd Quarterly WRX Burn event. The WRX burn event was performed in three sections over the course of five days this time.
- Part 1: 833,333 WRX burned on October 9, 2020
- Part 2: 1,000,000 WRX burned on October 11, 2020
- Part 3: 1,500,000 WRX burned on October 13, 2020
- Part 4: 3,753,333 WRX burned on April 16, 2021
Also, the amount of WRX burnt this time is 300 percent higher than the previous quarter. The first successful WRX coin Burn event took place on July 5, 2020, with a total of 833,333 WRX burnt.
The value of an 833,333 WRX was 92.2 lakhs INR ($120,000 USD) at the time. The entire supply of WRX tokens was 999,166,667 WRX after the first burn event, however it is now 995,833,334 WRX after the second burn event.
All burn events are recorded as a transaction on the blockchain to provide a transparent system. The TXID for the 2nd WRX Burn may be found here, here, here, and here.
There is also some good news for WazirX users: on Monday and Tuesday, it will hold a Highest Trader Kaun Marathon for WRX/USDT, giving out WRX worth $5,00,000.