Introduction

Thanks to the built-in XDB CHAIN mechanism tied up with the adoption of Branded Coins (BCO) and their unique buyback and burn mechanism (BBB), XDB Chain aims to enhance the real-world utility and supply-demand dynamics of the XDB coin and XDB CHAIN ecosystem through its powerful blockchain platform. This mechanism includes an allocation of up to 2.5% of each Branded Cryptocurrency’s supply for regular buybacks and burning of XDB coins, fostering scarcity and providing incentives for all stakeholders of the ecosystem. This approach strengthens the economic viability of the network. XDB CHAIN has officially launched the first BCO in June 2024 and triggered the very first BBB BURN event (#1) in the history of XDB CHAIN on July 1st 2024, marking a key milestone for the next development phase of the project. It is now time to advance to the next stage which happens on a quarterly basis with BBB BURN event #2 signaling strong advancement of the project as per its tokenomics and programmed digital scarcity. This BBB event will exist in perpetuity on the XDB CHAIN network.

Burn Event #2

The second burn event took place on October 1, 2024, following the successful Token Generation Event (TGE) of CBPAY in June 2024. CBPAY was the very first BCO launched on XDB CHAIN, and has lately expanded multi-chain thanks to MESH, the later AI-powered addition to the XDB CHAIN product ecosystem. This event, compliant with BBB rules, committed to burning 62,500,000 CBPAY tokens over each quarter over a multi year time frame. The BBB mechanic worked as follows: with an average sales price of $0.000331 per CBPAY, the 62,500,000 CBPAY tokens generated $20,687.5. The funds were then used to repurchase XDB coins at an average price of $0.0003352, resulting in 61,715,888.44 XDB being permanently burned. This built-in strategy aims to manage the CBPAY supply over the next four years through 16 events (14 remaining), assuming CBPAY’s market cap remains in the Tier 1 range of 0-50 million dollars. If the market cap of CBPAY increases relative to XDB and beyond 50 million USDT, the BBB process will burn a higher share of XDB coins, also potentially increasing the sale of CBPAY beyond 62,500,000 by quarter to exhaust the 2.5% pledged supply.

Summary of Burn Event #2:

Following the introduction of Branded Coins (BCO) and their unique buyback and burn mechanism (BBB), XDB Chain aims to enhance the real-world utility and supply-demand dynamics of the XDB coin through its powerful blockchain platform. This mechanism includes an allocation of up to 2.5% of each new Branded Cryptocurrency’s supply which will aggregate for regular buybacks and burning of XDB coins, fostering scarcity and providing incentives for all stakeholders. This approach strengthens the economic viability and attractiveness of the XDB Chain network in connection with growth of adoption and utility.

Official BURN Address and Impact on Supply

The balance of the official burn address has been updated following Burn Event #2, the second BBB event on XDB CHAIN after the launch of CBPAY. The burn address now holds 1,190,514,148.0170324 XDB CHAIN native coins (XDB), reducing the total supply by 61,715,885.44 XDB to 18,809,485,852.56 XDB coins. You can view the transaction details here.

The newly created token disclosure page on xdbchain.com provides comprehensive information on tokenomics and supply reduction. This page is integrated with the XDB CHAIN explorer, ensuring transparency and auditability for the XDB CHAIN community. The XDB token supply can be tracked in real time at https://explorer.xdbchain.com/circulating-supply.

This move further reduces both the circulating and total supply, transitioning from previous 18,871,201,737.42297 to 18,809,485,852.56 XDB Chain native coins. 

Recap of Official BURN Parameters:

Enhanced Digital Scarcity

By submitting transactions with zero weights and thresholds, developers can invalidate keys, including the master key, preventing further transactions and token creation. This feature, primarily for developers, can significantly impact the overall supply of the cryptocurrency. Detailed information on this feature is available in the official XDB Chain documentation with the launch of XDB Chain v19.

Creating a “BURN” Address (Technical Instructions)

Developers can create a “locked address” to burn tokens. Once transferred, these tokens become unusable in any future transaction. This process involves setting the weights and thresholds to zero, creating a scenario where all keys, including the master key, become invalid, effectively locking the account forever.

Conclusion

Burn #2 is now completed! The next event is Burn #3 and is scheduled for January 1, 2024, at 2 PM UTC.