LYO Credit (LYO), the native token of the ecosystem, went through a token burning process due to an unused token amount prior to being intended for minting. The total supply decreased by 23% from 250,000,000 LYO to 190,861,445 LYO, and we can therefore hope for an increase of the token value.
- Burning is the process of removing units from the total supply of a token.
- The token distribution has changed. A part of the percentage reserved for minting (48%) will be unused, and so it has been burned.
- The new total supply is 190,861,444.408614 LYO.
- As the total supply decreases, then the price may rise if demand remains constant.
Why Have LYO Tokens Been Burned?
Further minting will not be carried out on LYO Credit tokens since the service will be done on the decentralized ecosystem of L-Finance. Because of this, LYO’s token distribution had to change. Previously, the number of tokens reserved for minting was 48%. Now that minting is no longer a LYO Credit service, part of that quantity would no longer be used, and it was therefore decided to burn it. The tokens owned by users for minting have not been burned.
The total supply decreased by 23% from 250,000,000 LYO to 190,861,445 LYO.
Burning transaction: https://bscscan.com/tx/0x23bc92daeeae291964c168c58f8e104258feccd2df809dd6439f070dac6cb3d7
Smart Contract: https://bscscan.com/token/0x9bad6c75b5a4e72df8147cc89d068cc848648e59?a=0x2bd834865f931ed9660fc778cefb79770ee6a995
Will the Value of LYO Be Affected?
Even if it’s not guaranteed that it will, coin burning may enhance a crypto’s value by limiting the supply. As the total supply decreases, then the price should rise if demand remains constant. This is part of the reason that Satoshi Nakamoto programmed the Bitcoin protocol to halve every four years, reducing the block reward for miners by 50%. Thus, fewer bitcoins enter circulation. The burning of coins can serve a similar purpose.
Follow LYO price on CoinMarketCap: https://coinmarketcap.com/currencies/lyo-credit/
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