Transferring 480M RFOX Coins into a Black Hole
Back in September of 2019, we sent 20M RFOX coins into a wallet from which they’ll never return. Just a couple of days ago, we did it again, but at 24x the scale.
From our project’s onset, we envisioned an airdrop to show support for coin holders. However, several circumstances have caused us to change direction. After heaps of internal discussions, we made the difficult choice of replacing our planned airdrop with a massive coin burn.
Now, this isn’t something we take lightly, and our coin holders underpin the decision’s reasoning. Not only that, but the RFOX coin’s long-term value heavily influences our thinking.
To hear further details as to why we went this route, here’s our CEO with a firsthand account:
Now that you know where we’re coming from, let’s get into specifics of the new coin emission schedule.
From 1B to 500M
All those coins we’re setting ablaze must come from somewhere. For the sake of transparency — and to ensure a balanced distribution — we’ve created this chart:
But just in case you’d rather read text that isn’t baked into an image, here are the locations we’re pulling coins from:
KMD Development Fund: 50 Million
We earmarked these funds for Komodo Platform’s assistance with building RedFOX products. Half of this allocation went up in smoke.
Team & Advisors: 80 Million
This pool of funds fell victim to September’s burn of 20M. By burning another 80M, we cut the category’s overall supply in half.
Airdrops: 280 + 40 Million
Again, although some participants disagree with our decision to replace airdrops with burns, we’re taking the long view. These coins alone represent 32% of our original supply.
Ecosystem & Partnerships: 30 Million
We kept this subset of RFOX coins mostly intact. Although we’ve formed several partnerships since launch, we’ve many more to forge. These 30M coins include the 15M for phase 2 of September’s burn.
Proof of Burn
For those of you interested in verifying the transactions, look no further than our chain’s block explorer.
A quick peek into the account’s history reveals six total transactions. The first represents the burn from September — 20M.
Click here to see all transactional details of the burn address.
We separated the other five transactions for recordkeeping purposes. Rather than lump everything into the same group, we conducted individual burns to coincide with the figures mentioned in the section above.
With a total of 500M coins sent to their doom, our chain’s capped supply now rests at 500M. Moreover, we may very well sink additional coins into the launch of new ventures.
As RFOX coin’s circulating supply continues to diminish over time, remaining assets enjoy a stronger value proposition. From an overall supply standpoint, everyone holding RFOX now has twice the percentage compared to pre-burn.
For example, let’s imagine someone owning 10M coins. At the initial rate of 1B RFOX, those coins represented 1% of the total. But now that only 500M coins will ever exist, the same 10M coins now equal 2%.
Unlike the fiat mass-printed by central banks all over the world, our assets’ finite supply can only go down from here.
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