Burn baby burn, Oxen inferno!
We are about to do the biggest burn in Oxen history. 695,520 OXEN is set to be burnt over the next 6 months.
The effects of token burning are well documented in the crypto world — lots of altcoins have made burning a major part of their DNA. It’s a sure fire way to make sure inflation doesn’t get out of control and help bolster the tokenomics of your project.
Well, why let everyone else have all the fun? It’s Oxen’s turn to light a match and send some tokens up in flames.
The burn schedule
Over the next 6 months, there will be 6 burn events — once a month. On each burn day, there will be a bonfire full of 115,920 OXEN.
The first burn will take place on June 1, and the subsequent burn events will take place on the first of each month for the next 5 months after that.
Over the entire burn period, roughly 1% of the total supply of OXEN will be permanently destroyed.
Currently, almost half of the circulating OXEN is locked in service nodes. With the burn on top of this, the amount of unlocked OXEN available is going to take a huge hit. All of the OXEN being burnt is coming from foundation wallets, and while this will burn will help offset inflation over the next six months — we’ve got much bigger plans long term.
We’ve already announced our Session monetisation plan which involves heavy burning, as well as plans to create an exit node marketplace for Lokinet. And of course, the overall vision for Oxen includes a large and brimming ecosystem of privacy-enabled applications — all of which can bring value right back to the network through things like burning.
When privacy tech takes over — with applications like Session and Lokinet at the forefront — burning could completely offset Oxen emissions.
How does burning work?
The tokens are publicly burnt so that they are lost forever. A transaction is sent with a custom fee amount (this is the amount which will be burnt). The Oxen never goes to anyone's address, instead it is instantly burnt and removed from the supply.
Because Oxen is a private blockchain, we need to take some extra steps to make sure people can view the incoming transactions and verify the burn for themselves.
You will be able to view the burn transactions on the Oxen blockchain explorer and watch us melt down the tokens every month. We will post announcements across all of our channels including Telegram and Twitter with links to view the burn.
Why not use the OXEN?
Some people in the community have suggested we use this OXEN on another project, to provide additional funding for Session and Lokinet, to bolster marketing efforts, or just otherwise allocate the funds.
However, we think it’s best to go ahead with the burn. If we want to create additional funding for other projects or change the block reward for any other reason, that is something we will transparently discuss with the community before deciding to do it.
This Oxen will be burnt — and it’s gonna be amazing.
Get your gas cans ready
The first burn event is just a couple of weeks away. Tell your friends about it. Tell all of crypto Twitter about it.
This is a huge deal for Oxen, and burning is going to be a major part of Oxen’s future. This burn has already gotten the attention of some major players (Hi Teeka!), and we want as many eyes on this as possible.
Time to turn up the heat.