🔥Burning Mechanism

What is token burning?

Token burning is the process of permanently removing tokens from circulation, thereby reducing the total supply. Token burns are usually performed by the development team behind a particular cryptocurrency asset. It can be done in a number of ways, the most common being sending tokens to so-called "Eater addresses" or "dead addresses". Its current balance is publicly visible on the blockchain, but its contents cannot be accessed by anyone.

Why Token Burn is so important?

Here are the benefits:

1. Token value increases

This is probably the most well-known benefit of token burnings. Token burns reduce the overall circulation of tokens, and thus the overall supply. It may lead to an increase in the value of the token. The constant burning of the coin helps maintain a stable value.

2. Stabilize the value of token

Continued token burning help keeps the coin stable in value and also bet on long-term price increases. Token burning may make the holder's tokens more valuable than before.

How does COT burning works?

The burning may involve the project’s developers buying back tokens from the market or burning a portion of their already available supply. In COSOSWAP, there are 7 deflationary mechanisms.

Account rewards without referrals are used for COT token burning

Participating in Launchpad requires burning COT tokens

10% of Launchpad fee will be repurchased and burnt

30% of transaction fee will be repurchased and burnt

100% of one-click issuance tool commission will be burnt

20% of one-click crowdfunding tool commission 20% will be burnt

30% of the transaction fee in the NFT market will be burnt

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