THE BURN TOKEN

BURN

The Burn Token (BURN) is our primary token offering. BURN's core algorithm is designed to ensure that for every transaction, 1% of the amount transacted is burned. This self-annihilating process will improve the scarcity of BURN.

BURN is backed by Ethereum in reserve in our exchange contract, which offers full liquidity, thus BURN holders can sell for ETH and many other tokens whenever they choose.

BURN was minted with a fixed supply of 10,000,000 tokens.

TOKENOMICS

With each transaction of BURN, whether it is a trade or transfer, 1% of the transaction is transferred to the Ethereum Genesis Wallet. This removes the amount transferred from the total supply of BURN. BURN is backed by Ethereum in reserve and under the assumption that this ETH amount was fixed, together with the deflationary process, supply would fall with every transaction, resulting in a continuous rise in the price of BURN.

There was no airdrop for BURN. Each BURN has been traded for Ethereum or tokens, and the price is driven by our community. The price dynamics together with removing the assumption of a fixed ETH backing will be explained in greater detail in our exchange section.

THE BURN TOKEN

EXCHANGE

The Burn Token makes use of Uniswap, which is an Ethereum-based protocol that is designed to facilitate automatic digital asset exchange between ETH and ERC20 tokens. Our exchange contract holds a reserve of ETH and BURN tokens. Trades that are executed on our exchange contract also allow for direct ERC20 to BURN trades using ETH as an intermediary.

LIQUIDITY

Most traditional exchanges maintain an order book and use that to match buyers and sellers of a given asset. Uniswap on the other hand, utilizes liquidity reserves in facilitating the exchange of digital assets on its protocol.

The reserves in our exchange contract are supplied by a network of liquidity providers. As the first liquidity provider to add liquidity to our exchange contract, we initially set the exchange rate between ETH and BURN at $0.0011494. All subsequent liquidity providers to the BURN/ETH pool will deposit liquidity using the exchange rate at the time of their deposit.

Uniswap also makes use of so called ‘liquidity tokens’, which can be thought of as being a representation of a liquidity provider’s contribution to our exchange contract. Uniswap will mint liquidity tokens in order to track the relative proportion of total reserves that each liquidity provider has contributed. Liquidity providers are able to withdraw their proportional share of ETH and BURN tokens from our exchange contract, at anytime, as well as choose to sell or transfer their liquidity tokens between accounts without having to remove liquidity from our exchange contract. Liquidity providers will receive a share of transaction fees when a trade is executed.

EXCHANGE RATE

x * y = k

k is a constant that does not change, and x and y signify the quantity of ETH and BURN tokens that are available in our exchange contract. With this formula, the exchange rate of BURN will always be at a particular point on the resulting curve of the above formula.

EXAMPLE

Scott wishes to initiate a trade such that he exchanges his 5 ETH for BURN. Liquidity providers have deposited an amount of ETH and BURN into the exchange contract, which for the purposes of this example, is 100 ETH and 5,000 BURN.

x = ETH pool = 100
y = BURN pool = 5,000
k = 100 * 5,000 = 500,000

Scott will initiate his trade by sending 5 ETH to the ETH pool in our exchange contract, upon which a 0.3% liquidity provider fee is taken out. The remaining 4.985 ETH is added to the ETH pool, with k being divided by the new amount of ETH in the liquidity pool for the purposes of determining the new size of the BURN pool. The remaining BURN tokens are then sent to the buyer, which in this case is Scott.

Scott sends: 5 ETH
Fee = 0.015 ETH
x = 100 + (5 – 0.015) = 104.985
y = 500,000/104.985 = 4,950.642
Scott should receive: 5,000 – 4,762.585 = 237.415 BURN, but because the BURN contract has 1% deflation rate + zero decimals
Scott actually receives: 237 - 3 = 234 BURN

The liquidity provider fee, which was previously taken out when Scott initiated the transaction, is now added back into the liquidity pool. This functions as a payout to liquidity providers, which can be collected when these providers remove their liquidity contribution from the market. Because the fee is added after price calculation, k increases gradually with each trade that is executed on our exchange contract, making the act of investing liquidity into an exchange contract a profitable one for liquidity providers.

x = ETH pool = 104.985 + 0.015 = 105
y = BURN pool = 5,000 - 237 = 4763
k = 500,115

THE BURN TOKEN

CINDER

The Burn Token's secondary token offering is the Cinder (CNR) token. CNR was created in order to reward community members who add liquidity to the BURN/ETH pool.

The BURN & CNR creation wallet matches the amount of BURN tokens that are removed from total supply, and sells BURN for CNR, thus adding ETH into the CNR/ETH pool. This CNR is then distributed daily, in proportion to all members who add liquidity.

CNR was minted with a fixed supply of 1,000,000 tokens.

THE BURN TOKEN

RISK DISCLOSURE

The Burn Token is not a registered broker, analyst or investment advisor. Everything that we provide on this site is purely for guidance, informational and educational purposes. All information contained herein should be independently verified and confirmed. We do not accept any liability for any loss or damage whatsoever caused in reliance upon such information or services. Please be aware of the risks involved with any trading done in any financial market. Do not trade with money that you cannot afford to lose. When in doubt, you should consult a qualified financial advisor before making any investment decisions.

THE BURN TOKEN

DISCLAIMER

Trading and investing in cryptocurrencies (also called digital or virtual currencies, crypto assets, altcoins and tokens) involves substantial risk of loss and is not suitable for every investor.

Any content on this site should not be relied upon as advice or construed as providing recommendations of any kind. It is your responsibility to confirm and decide when to trade our token. Trade only with risk capital; that is, trade with money that, if lost, will not adversely impact your lifestyle and your ability to meet your financial obligations. Past results are no indication of future performance. In no event should the content of this correspondence be construed as an express or implied promise or guarantee.

The Burn Token is not responsible for any losses incurred as a result of trading our token. Information provided in this correspondence is intended solely for informational purposes and is obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted.

None of the content published on this site constitutes a recommendation that any particular cryptocurrency, portfolio of cryptocurrencies, transaction or investment strategy is suitable for any specific person. None of the information providers or their affiliates will advise you personally concerning the nature, potential, value or suitability of any particular cryptocurrency, portfolio of cryptocurrencies, transaction, investment strategy or other matter.

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