BCO Buy-Back-Burn (BBB) Impacts on XDB Supply

Understanding the Quarterly BCO Burn

The Quarterly BCO Burn involves systematically reducing the supply of BCO tokens through buy-back and burn. The BURN #1 event was triggered by the CBPAY TGE. Here’s an overview of the CBPAY BBB process:

  • BBB CBPAY Pledged Supply: Each quarter, 62,500,000 CBPAY tokens are earmarked for burning. This represents a significant 2.5% of the total supply pledged to the BBB process, leaving 937,500,000 CBPAY tokens.
  • Average CBPAY Price: The average price at which CBPAY tokens were allocated to BURN #1 event was $0.0005960.
  • Average XDB Price: The current average price of XDB tokens bought back is $0.0003610.
  • Exchange Rate: During BURN #1 event, the exchange rate BCO/XDB (in this case, CBPAY/XDB) was 1.650969529, projecting a total of 1,650,969,529 XDB tokens to be burned over the 4-year term. This can accelerate further if the Market Cap Tier of CBPAY increases and the CBPAY/XDB relative ratio increases.

Projecting the Impact on XDB Supply

The burn strategy is not just about reducing the supply of XDB coins; it aims to have a profound impact on the XDB ecosystem. Here’s how:Current XDB Supply: After the BURN #1 event, the total supply of XDB tokens will be reduced to 18,871,201,738.00.

  • Target Supply: The ultimate goal through the BBB process is to bring down the XDB supply to 10,000,000,000 tokens.
  • Supply Left to Target: To achieve this target, an additional 8,871,201,738.00 XDB tokens need to be burned.
  • Four-Year Plan: To reduce the XDB supply to the target of 10,000,000,000 within four years, an estimated 5.731550474 equivalent CBPAY-like BCO with the current range (MCap / CBPAY-XDB price ratio) will be needed. This means that 6 or more BCO will accelerate the BURN of XDB Supply to get to 10 billion in less than 4 years.
  • Additional Projection: A CBPAY-like BCO in the current Market Cap tier and with that CBPAY/XDB price range is projecting to BURN 18.4% of the XDB supply to get to 10 billion left.
MetricValue
Current XDB Supply18,871,201,738.00
Target XDB Supply10,000,000,000.00
Supply Left to Target8,871,201,738.00
Four-Year Plan5.731550474 equivalent CBPAY-like BCO with current range (MCap / CBPAY-XDB price ratio)
Additional Projection18.4% of XDB supply projected to be burned by CBPAY-like BCO to get to 10 billion

Leveraging BCO Pledge Network Support

A key pillar of XDB CHAIN ecosystem coin (XDB) is the BCO pledge on each tokenmonics, which supports the XDB CHAIN as a whole. This system leverages the protocol layer and the robust XDB CHAIN and BCOs communities to create value across the entire ecosystem. By setting the foundation for a deflationary mechanism, the aim is to increase ecosystem value in line with growing participation and utility creation.

Why This Matters

The Quarterly BCO Burn is more than just a technical activity; it is a strategic initiative designed to:

  • Enhance Ecosystem Stability: A controlled reduction in supply helps stabilize the ecosystem, making it more resilient to market fluctuations.
  • Reward the Community: Token burns reflect a commitment to enhancing value for the community. As the supply decreases, the tokens held could potentially increase in value.

The BBB Mechanism on XDB CHAIN

The BBB (Buy Back & Burn) mechanism on the XDB CHAIN is designed to enhance the value proposition of the XDB coin and institute a deflationary mechanism. Specifically, every new Branded Coin (BCO) launched on XDB CHAIN allocates up to 2.5% of its total supply for regular XDB buyback and burning. This systematic process, executed quarterly on the XDB CHAIN protocol, involves a dedicated burn address, ensuring full community auditability.

The BBB mechanism on XDB CHAIN works in tandem with the launch of each BCO, like the inaugural CBPAY, to enhance the value of the overall ecosystem. By regularly buying back and burning XDB tokens, the BBB process helps to reduce the circulating supply and increase the scarcity of the XDB coin, benefiting the broader XDB CHAIN ecosystem, including the CBPAY token and its adoption.

Market Cap Buy-back Tiers System

The Market Cap Buy-back Tiers system implemented on the XDB CHAIN is designed to accelerate the deflationary impact of the BBB mechanism, thereby increasing the scarcity of XDB coins over time.

Key points:

  • Allocation for Buyback and Burning: Up to 2.5% of each new BCO’s total supply is allocated for regular buyback and burning of XDB tokens.
  • Accelerated Burn Rate: The Market Cap Buy-back Tiers system accelerates this burn rate based on the market cap of each BCO. As the market cap of a BCO increases, the buy-back multiplier also increases, resulting in a higher percentage of the BCO’s supply being used to buy back and burn XDB tokens each quarter.

For example:

  • If a BCO has a market cap between $0-$50M, the buy-back multiplier is 1x, burning 0.1563% of the BCO’s supply each quarter.
  • If the BCO’s market cap increases to $50M-$100M, the multiplier rises to 1.25x, burning 0.1953% of the supply.
  • At a market cap over $500M, the multiplier reaches 2x, burning 0.3125% of the BCO’s supply each quarter.

This accelerated burn rate systematically reduces the circulating supply of XDB coins over time, increasing their scarcity and potentially contributing to the value creation for the entire XDB CHAIN ecosystem.

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