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.
The BBB Mechanism on XDB CHAIN
The BBB (Buy Back & Burn) mechanism on XDB CHAIN allocates up to 2.5% of each Branded Coin’s supply to recurring XDB burns, executed quarterly through dedicated public burn addresses.
The BBB mechanism on XDB CHAIN works in tandem with the launch of each BCO, beginning with CBPAY. Each executed event reduces the XDB supply by the amount burned, which is recorded on-chain.
Market Cap Buy-back Tiers System
The Market Cap Buy-back Tiers system was proposed to vary the rate at which the pledged BCO allocation is used, according to the BCO’s market cap.
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.
Under this schedule the pledged allocation would be used over a shorter period.
