Merit Circle, one of the prominent blockchain game guilds in the decentralized world, made a huge announcement on April 13, which is about the casino game P3 Protocol, that they own majority shares dealing with the administration of the guild. It has been disclosed that Merit Circle is going to burn 37,551,413,982 BEAM tokens and with this Such a maneuver is a daring move that allows the newcomer to the cryptocurrency ecosystem to steal the thunder and focus the attention of the entire crypto-community, on that matter, where tokens burns are used to regulate supply and to potentially raise the value of remaining tokens in circulation.
Hence, Merit Circle’s move of burning a staggering number of tokens purports their desire to offer a viable economic scenario that is sustainable. The guild’s action to restrict the amount of tokens available on the market is aimed at increasing the level of scarcity and can potentially make tokens with no reliance on their supply more attractive or valuable. But this big token burn has had a convoluted effect on BEAM’s price in the market with the last 24-hour price getting down 13.7% in accordance with the CoinGecko data.
Market impact and speculation
Consequently, many have come to think about Merit Circle as either a beneficiary or an aggressor in the cryptocurrency market. Despite the fact that the long-term effects of this dramatic -50% drop in supply are yet to come to the fore, the current short term reaction has caused the BEAM market value to dip. This decline of price was likely to be as a result of some market factors we are yet to know if the algorithm burn has any direct link or not to the current trend.
Cryptocurrency experts and investors are widely monitoring this signal since drastic events could potentially escalate to the crypto market that has been holding extreme prices in the past timeframes. The potential impact of that could be setting examples for other crypto players as well as other projects seeking a more efficient token economy might lead to the general adoption of this approach.
Bearing the future of BEAM tokens
News on the token burn of the Merit Circle project has set off the buying wave in the market, and so, the market now desires to know the impact of the quickly developing BEAM token system on the latter’s ecosystem as well as holders. The decision to freeze the token’s liquidity could be seen as having two effects that are very opposite; it either brings a recovery of the share price due to the increase in scarcity or market adjustments based on the investor perception and the market dynamics.
The cutting-edge strategy by Merit Circle reflects the ever-evolving trials and experiments in cryptoeconomics, in which burns of tokens is just one technique by digital assets to stabilize or increase token prices. The prospect of BEAM tokens are going to be reliant on the mix of market response, overall crypto market directions, and the right steps of the Merit Circle team.
The crypto community will be keeping tabs on how the business is doing and if this bold take by Merit Circle will effect a positive reappraisal of BEAM or if it will be a warning to the other projects thinking of doing similar hash large-scale token burns. The impression through which this act can impact future policies in blockchain gaming and the broader cryptocurrency sector may well be influenced.
