Imagine walking into a room only to find someone setting $20,000 on fire. It sounds wild, right? Well, that’s kind of what we’ve been doing with Quidax Token (QDX). We’ve burnt over 150,000 QDX (worth over $20,000) in just two months.
But before you panic, hold on. 🤣 We’re not being wasteful. What we’ve been doing is called buy-back and burn, and it’s one of the smartest ways to make a token more valuable over time. So why is Quidax burning QDX? And how does it benefit you as a holder? Let’s break it down 👇
What is Token Burning?
Token burning means permanently removing tokens from circulation by sending them to a special wallet address known as a burn address (also called an eater/unspendable address). No one can access a burn/eater wallet because it does not have a private key. Once tokens go into the wallet, they’re lost forever.
Now, you may be wondering why tokens get burned. Well, crypto projects burn tokens to reduce their supply. The idea is that when the supply of a token goes down, the tokens left in circulation can become rarer and potentially more valuable for holders.
It’s the same way scarce things are often more valuable. But burning tokens is not unique to QDX. Some of the biggest crypto projects in the world do it too👇:
- Binance Coin (BNB): Binance burns BNB every quarter using revenue from trading fees on Binance Exchange.
- Ethereum (ETH): Since the EIP-1559 upgrade in 2021, a portion of every ETH transaction fee is automatically burned.
- Ripple (XRP): A small amount of XRP is removed from circulation with every transaction as a fee, ensuring constant burning.
- PancakeSwap (CAKE): PancakeSwap burns CAKE tokens weekly using a portion of trading fees and revenue from lotteries/NFT sales.
What is QDX Buy-Back & Burn?
QDX buy-back and burn is the process the project buys back its own tokens from the market and permanently destroys them by sending them to an unspendable wallet. This is done to make the token more scarce and potentially increase its price over time.
For QDX, we’ve taken things a step further than just burning tokens. The whole process begins with community action within QDX Raffle, a web3 game on BNB Chain, powered by QDX.
Here’s everything you need to know about QDX Raffle 👇
20% of the revenue generated from the game is used to buy back QDX for burning every month. This makes QDX Raffle more than just a game. It’s also a powerful engine for strengthening QDX.
Here’s how it works 👇:
- Players mint NFTs to join QDX Raffle cycles using Binance Coin (BNB).
- 20% of those BNB funds is set aside.
- Those funds are used to buy back QDX from the open market.
- The QDX is burned forever, reducing supply and adding value to the ecosystem.
This deliberate process has many benefits for the QDX ecosystem. First, it reduces the total supply of QDX, making it more scarce. At the same time, it also boosts demand since the market buy-backs create consistent buy pressure. The overall effect is a stronger QDX. So if you’re holding QDX, every burn potentially makes your bag more valuable 💰.
The Story So Far
June was the start of something big. From the Genesis Cycle (1.364 BNB) and Cycle #2 (6.24 BNB), a total of 7.604 BNB was used to buy back and burn QDX. This translated into 49,199.144 QDX burnt out of circulation.
Then came July, and things really heated up. We stepped up the burn using allocations from Cycle #3 (6.0528 BNB), Cycle #4 (5 BNB) and Cycle #5 (5.16 BNB). A total of 16.2128 BNB was used to buy back QDX. The July burn wiped out a massive 100,970.483 QDX from circulation. That’s over double June’s burn!
After two months of Buy-Back & Burn, 150,170 QDX worth over $20,000 have been permanently removed from circulation.
And we’re just getting started 👀. For August, we have 8.0368 BNB allocated from Cycle #6 (3.398 BNB), Cycle #7 (2.5228 BNB) and Cycle #8 (2.116 BNB), with more funds expected from subsequent raffle cycles. That means even more QDX will be bought back and burnt. The fire keeps burning, and so does the vision for QDX.
Final Thoughts
Let’s return to that room with $20,000 set on fire. The difference here is that the QDX being burned isn’t wasted. Instead, value is being returned to the ecosystem.
Think of it this way: Every QDX Raffle Cycle is a fireplace. Each card you mint adds fuel to the fire. And every burn makes the remaining QDX rarer and potentially more valuable. Now, don’t just watch the fire; mint a QDX Raffle NFT today and be part of the next burn. And guess what? You also get to win cool rewards when you join QDX Raffles. So far, over $100,000 has been won by QDX Raffle players. So, what are you waiting for?
⚠️ Disclaimer: This content may cause extreme FOMO (Fear of Missing Out). Side effects of investing include sudden wealth (or, you know, the opposite 😢). Please do your own research (DYOR) or speak to your financial advisor before making any decisions.
