Does chz coin have a destruction mechanism?

Yes, CHZ coins have a burning mechanism called the "Community Burning Plan". The plan aims to remove CHZ coins from circulation and destroy $2.5 million of CHZ coins from transactions every month for 10 years, with an estimated destruction of approximately 6 billion CHZ coins. The burn mechanism operates by collecting transaction fees on a daily basis, converting to BUSD, purchasing CHZ coins and sending them to a burn address to reduce circulating supply, increase value and increase investor appeal.

#CHZ Is there a destruction mechanism?

Yes, CHZ coins have a burning mechanism called the "Community Burning Plan".

Community destruction plan

The Community Burn Program is a program launched by Chiliz in partnership with Binance to remove CHZ coins from circulation. Launched in December 2022, the program will destroy the equivalent of $2.5 million in CHZ coins from CHZ transactions each month.

The destroyed CHZ coins will be removed from the token share of the Chiliz team, advisors and early investors. The destruction plan will last 10 years and is expected to destroy approximately 6 billion CHZ coins, accounting for more than half of the current circulating supply.

How the destruction mechanism works

The destruction mechanism operates through the following steps:

• Collect a specified amount of fees from CHZ transactions every day.
• Convert collected fees into BUSD, a stablecoin pegged to the U.S. dollar.
• Use BUSD to purchase CHZ coins every month and send the purchased CHZ coins to an inaccessible destruction address.

What is the purpose of the destruction mechanism?

The destruction mechanism is designed to have a positive impact on CHZ by:

• Reduce the number of CHZ coins in circulation, thereby reducing supply.
• Increases the value of CHZ because fewer CHZ coins compete with the same amount of demand.
• Increases CHZ’s appeal to investors because the burning mechanism reduces the token’s potential inflationary pressure.

in conclusion

The CHZ coin burning mechanism is an important tool designed to support the value of CHZ coins by reducing the number of CHZ coins in circulation. Continued enforcement of this mechanism could have a positive impact on CHZ’s price and long-term prospects.

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