Uniglo is a new DeFi project that aims to genuinely build the value of its GLO token over the long term – and it’s piquing the interest of whales and analysts. The project will hold an assortment of assets, including digital currencies, rare NFTs, digitized gold, and real-world collectibles. Simultaneously, the project has a way of balancing the indefinite growth of its community vault with controlled token burning.
The burn mechanism of Uniglo (GLO)
One of the problems that Uniglo aims to solve is the inflation that riddles the fiat currency. Uniglo is the first Ethereum-based project that will attempt to apply two types of burns.
This double burn mechanism first consists of a standard burn model implemented on all buy or sell transactions of the GLO token. A percentage of the trade is burned and removed from circulation. Unlike the current monetary system, Uniglo promotes a natural deflationary mechanism by causing an indefinite reduction in its token supply.
The second part of its double burn approach is the Ultra-Burn Mechanism, which is hardcoded into the Uniglo protocol. This mechanism is potentially revolutionary for the deflation effect on cryptocurrencies. It is similar to a share repurchase program or a buyback-and-burn model, involving the purchase of GLO tokens from the secondary market. With profits generated in connection with the Uniglo Asset Vault, the community can determine when and how many tokens to subject to its Ultra-Burn Mechanism.
Token burn with Shiba Inu (SHIB)
Shiba Inu is the second-largest meme coin. One of the strategies of Shiba Inu to grow the price of its SHIB token is by burning and thus reducing the supply of SHIB in the market. The ecosystem has a Shiba “burn portal” in which it regularly sends coins to be removed from circulation. Since the launch of this portal, Shiba Inu has burned over 410 trillion SHIB tokens worth $4 billion. However, the project has a very high token supply to begin with – one quadrillion of which 590 trillion are in circulation.
Pancakeswap (CAKE)
Built on the BNB Chain, PancakeSwap is a popular decentralized exchange. With many digital currency exchanges happening, the platform gets busy generating new CAKE tokens. PancakeSwap creates approximately 530,000 tokens daily via staking pools and liquidity farming. To counter the tendency of supply exceeding demand, Pancakeswap burns small token amounts with every trade or harvest yield. It also schedules a regular burning event every Monday.
The bottom line
The goal of token burn mechanisms is to have more coins leaving circulation than the number of coins produced. But Uniglo adds fuel to the flame by applying a dual burn model. As the Uniglo protocol expands, the burn events will become more sizeable, causing a cascading effect on the price of the GLO token.
Learn More Here:
- Join Presale: https://presale.uniglo.io/register
- Website: https://uniglo.io
- Telegram: https://t.me/GloFoundation
- Discord: https://discord.gg/a38KRnjQvW
- Twitter: https://twitter.com/GloFoundation1
