How SOV’s Deflation Workscredit to community member Ben Mason
The SOV contract has three ways in which tokens are burned and removed from the supply forever.
1. Transaction burn
The transaction burn is a variable rate burn that destroys a percent of every transaction. It follows a bell curve-shaped trajectory, starting at 0.05% at the initial supply of 1 billion, peaking at 1.25% at a supply of 300 million, and ending at 0% at a supply of 21 million.
This burn is directly related to the distribution model, which would need to be explained first. Every genesis holder can claim 5000 SOV from the sovmintofeos contract account. It holds the 800 million+ tokens that are able to be claimed by genesis holders. Once a week, the Airburn action can burn 7.5 million of the unclaimed SOV sitting in the account. This Airburn can be activated by anyone in the community by clicking the airburn button on our web wallet (eossov.one). After the 7.5 million is burned, there is a cooldown of 7 days to when the next Airburn opens. This will continue until the account is empty, and the time it will take is uknown, since it depends on how many people claim their SOV.
This burn simply lets you burn your own tokens…. and that’s it…. it can be customized by being used in other contracts for unique deflationary tokenomics. Stay tuned to our TG channel to hear more about this deflationary mechanism and possible future developments!
With these three burns, SOV offers EOS users and beyond a unique asset with a great user experience. SOV’s model is in stark contrast to other deflationary tokens and virtually incomparable to inflationary tokens.
Please drop by our lively telegram group to learn more and get involved!
SOV Telegram Group: t.me/eossov