What is Token Burning?
Burning is a term used in crypto to remove a certain amount of tokens from circulation. The reason is pretty simple, to decrease the circulating supply. A lower circulating supply means an increased scarcity, resulting in higher demand and an increase in value.
The Burning Mechanism of TECH Explained
A 5% token burn applies for TECH purchases on the Cryptomeda marketplace for:
- Meda gas
- Upcoming Meda Shooter boosts sale
- Loot boxes
- Any other sales that Cryptomeda will open in the future
Let’s look at the burning process of the Meda gas sale, being a Meda Wars in-game currency. Once a week, before the end of each Meda Wars season, TECH tokens collected from the Meda gas sale will be transmitted accordingly:
- 5% goes to the burning wallet
- 95% goes to the Meda Wars reward system wallet
The higher the demand for Meda gas, the richer the reward system of Meda Wars. A similar process will soon be implemented into Meda Shooter, so the amount of Meda Shooter boosts purchased on the Cryptomeda marketplace will directly influence the reward system of the Meda Shooter game. This is the beginning of the platform’s reward system.
Burning will be executed every three months. TECH tokens that will be on the burning wallet at the time of burning will be removed from circulation forever.
For all transparency, the burning wallet has this address: 0x36Ac6dC282276312Cf70C445bABa444890fB7B40
We have collected 1,459,680 TECH from the recent Meda gas sale, from which 5% (72,984 TECH) goes to the burning wallet and 95% (1,386,691 TECH!) to the Meda Wars reward system wallet. We also burn 10% of cross-game NFT sales from the past, where we collected 4.15mil TECH.
Cryptomeda burned 488,664 TECH tokens during the first burning execution, which was done today, on August 26, 2022, exactly one year after the TECH token launch. We will regularly collect TECH tokens from the marketplace purchases to the burning wallet, and the token burning will be executed every three months.
Cryptomeda aims to revolutionize the gaming sector with upgradable and interoperable NFTs utilized in all Cryptomeda games. All economic activity is facilitated by TECH tokens, which enable trade, commerce, and Gamefi within the platform.