INTRODUCTION

From a layman point of view, burning a financial asset might look atrocious but burning crypto tokens has always been normal scheme. The practice of token burning is gradually becoming a common phenomenon within the crypto industry. Burning of token is a purposeful step often taken by coin developers in removing a specific number of token in circulation. Most often, this action is often taken to avoid inflation. Token burn is mostly practiced by altcoins projects to regulate the amount of token that is in circulation. Token burning often serve different purposes to projects that practice it.

Token burning process often involves a buy back of tokens in circulation or removing them from circulation and making them scarce or unavailable. Most times these tokens are transferred into a wallet commonly known as the "eater address" This eater address is a public wallet and can be viewed by all nodes but remains permanently frozen. Most projects often deploy different mechanism of token burning. Some burn tokens periodically in cycles, some burn tokens based on transaction carried out (e.g ripple) but irrespective of the mechanism deployed, the end goal is similar. Token burning is a deflationary measure that is often used to maintain a steady value of coins.

Basic economics shows that when an item is in short supply and there is a resultant increase in demand, the value of such items goes up, this is the basic supply/demand law. Token burning is no longer a new phenomenon among crypto projects as most of them perform this burning process either regularly or one-off burn process. It doesn’t only help to control inflation but create an enabling platform for the remaining token to appreciate in value.

LUNALAND BURNING MECHANISM

LunaLand is a decentralized platform that focuses on peer to peer of digital currencies. In a similar fashion where gold or fiat aims to combat inflation and unending supply of money, LunaLand also incorporate such techniques within the crypto domain. In fact, it is the gold of the crypto sphere. Its deflationary supply of Coins is a top feature and it also has a burning function in place. All these are put in 0lace to offer protection against inflation. The word "hyper deflationary" was coined by the LunaLand team to showcase its token supply model in which most of the initial supply will be burnt till a desired supply of 400 million LLN is attained. LunaLand burning process is programmed to take place at regular intervals. At the time of writing this article, about 10 billion coins have been burnt so far, which is the first ever burn event of the platform and there are still many events to come, you can track it at LunaLand.io

LunaLand’s hyper deflationary supply still remains one of its most unique feature. It is expected that the burning cycles will deliver a target supply of 400 million from the initial supply of 1 trillion at a rate of 99.96%. The burning mechanism deployed by LunaLand is manual and will be controlled by the team. Also, the burning rate will increase as the number of LLN coins increases. In other words, there is an increasing magnitude of burn rate with holders. Holders are usually guaranteed 10% of tokens after a burn cycle since just 90% gets to be burned. In addition, it has been established that the burn cycle will be minimum weekly.

IMPACT OF BURN ON LLN TOKEN PRICE

The burning process has a direct impact on $LLN token price because as there is a reduction in the circulating supply, it subsequently creates scarcity which is a driver of demand.
LunaLand token burning mechanism does not only combat inflation but it also help to drive up demand for the token whose supply has already been reduced. The token burning is utilised as a means to try and boost the value of the remaining LLN tokens. It will also help to stabilise the price of LLN. As we know, cryptocurrency investors are often attracted to projects with a high value appreciating index and also with a stable price and that is why LunaLand is exploring the strategy to make the project not only attractive to investors but also profitable on the long run.
According, it will also make the value of community holders tokens to keep increasing, making it more valuable than before. More importantly, trust and reputation is also a major element in the burning process. Overtime, we’ve seen projects fake the burning process with the aim of attracting investors. LunaLand has been sincere and built on a honest foundation and that is why they have made it possible for individuals to tract the burning process on the official website

ROADMAP AND VISION

LunaLand long term plan is directed towards establishing a digital currency with a real life use case as well as adoption. Overtime, we have seen several crypto projects spring up and also fade off quickly owing to the fact that they cannot be sustained due to no use case or real life application. But LunaLand is more ambitious and with a greater potential and there are plans to initiate an online store and app on LunaLand platform. Also, as captured on the road map, LunaLand will launch its own store and also enter into merchandise partnerships.

Conclusively, LunaLand has been a able to carve a competitive niche for itself ever since its establishment. It is a project that goes beyond mere development of token for sale. From what I have seen so far, I wouldn’t say it’s too early to regard LunaLand as a successful project because of its potential. Currently, presale is ongoing and a first cycle of token burn has been carried out. We can only see the price soar high from here. There is a popular saying that "make hay while the sun shines", the time to bag some $LLN token is now as it might become expensive in time to come. Well, you can still check the official website and social media platforms for further information about LunaLand.

USEFUL LINKS :

Website: https://www.lunaland.io/
Whitepaper: https://www.lunaland.io/whitepaper
Twitter: http://twitter.com/IoLunaland
Telegram: https://t.me/lunalandio
Reddit: https://www.reddit.com/r/Lunaland/
Instagram: http://instagram.com/lunaland.io

AUTHOR

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