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 #3 signaling strong advancement of the project as per its tokenomics and programmed digital scarcity. This BBB (buy back and burn) event will exist in perpetuity on the XDB CHAIN network until XDB supply will be reduced to 10 billion.

Burn Event #3

The third burn event took place on January 1, 2025, 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 $0.000397 per CBPAY, the 62,500,000 CBPAY tokens generated $24,812.5. The funds were then used to repurchase XDB coins at an average price of $0.000985, resulting in 25,195,471.15 XDB being permanently burned. This built-in strategy aims to manage the CBPAY supply over the next four years through 16 events (13 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 USD, 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 over a shorter period of time.

Summary of Burn Event #3:

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 Coin’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 #3, the second BBB event on XDB CHAIN after the launch of CBPAY. The burn address now holds 1,215,709,619 XDB CHAIN native coins (XDB), reducing the total supply by 25,195,417 XDB to 18,784,290,380 XDB coins. You can view the transaction details TRX Link

This move further reduces both the total and circulating supply, transitioning respectively from previous 18,809,485,852 to 18,784,290,380 XDB coins and from 17,100,785,915 to 17,075,590,443. 

Recap of Official BURN Parameters:

Enhanced Digital Scarcity

By submitting transactions on the XDB CHAIN network with specific parameters like zero weights and thresholds, developers can invalidate keys, including the master key, preventing further transactions and token creation. This is how token BURN works on XDB CHAIN 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 #3 is now complete! Get ready for Burn #4, scheduled for April 1, 2025, at 2 PM UTC. XDB CHAIN continues to grow, building a sustainable ecosystem that consistently reduces token supply as adoption expands.