In a post I shared here just few weeks back I announced that the 2 million BID tokens burned milestone had been reached, and now, not long after, we're fast approaching the 3.5 million burned mark, resulting in over 6% of the supply now being gone, forever. With many more burns to come in the near future.
Is the BID token the burniest token in DeFi? It just might be. But first let's discuss why burns are so popular in the crypto-space, and what they bring for token holders. Which is all pretty simple really: Token burns reduce the supply. So assuming there's demand for the token, there's less to go around. Which should make people fight harder and pay more for those that remain. Supply-and-demand.
3 Million BID Burn Event
Recently the DefiBids team announced a 3 million BID burn event, spread out over the space of the next three months. With 1 million BID tokens being burned over the months of January, February, and March. With half a million or so having been so far from this event in January. The original genesis mint for BID token was 50 million, so 3 million is 6% of the original supply...
5% Buyback and Burn
In addition to the main burn event mentioned above, the DefiBids team also announced that 5% of all ETH spent on the platform to purchase credits for the auctions would be spent on buying back and burning BID tokens from the exchange...
BID Token is Deflationary
In addition to the above burn events and mechanisms, the BID token by nature is a deflationary token. Which means that with every trade or transfer made with BID tokens a "tax" is removed from the amount and burned, permanently reducing the supply. Sometimes referred to as a "weak hands tax", being as those who continue to hold strong (HODL!) tend to be the beneficiaries. And it is this deflationary mechanism that was responsible for the first 2.5 million BID tokens burned, and regardless of any other special events or promotional activities, this burn-tax is baked in, and will continue forevermore.
So to reiterate, over 6% of the BID token genesis mint has been burned to date (with the DefiBids platform having gone live in December), and the burn events above should take BID well past the 10% burned milestone, and then onward from there. It's still early days for DefiBids, and of course limited supply means nothing without said demand, but should DefiBids go on to be the huge success that all token holders naturally hope it will be, this reduced supply should increase the value of every BID token in existence. With the extra benefit for a staking token like BID being a lesser dilution of staking rewards in future as less-and-less tokens are available to share in the rewards pool.
Win $10,000
Not yet tried DefiBids? Now could be the ideal time to jump in and give it a go, with the latest and largest auction yet offering a prize of $10,000 (in USDC tokens). Among a variety of other Defi tokens being available to be won in DefiBids lowest-unique-bid auction format contests. GO PLAY!
Or alternatively, if you're not already familiar with the DefiBids platform and staking token (with 15% of all ETH used to purchase credits on the platform being paid out to stakers), you can read my short introductory post published at Publish0x HERE.
