When I first heard about SOV, the first words came into my mind is, "A Deflationary token where a percentage of token get burn on every Transaction ?? " who will use it as a transact of value, turns out I am wrong, Since SOV token launch millions of tokens got burned & every month 33 million tokens getting burned and every day it kept increasing. SOV is an airdrop token to EOS genesis account holders, every genesis account can claim 5000 SOV token and use it as transaction of value.
Till Now 352 million SOV tokens got burned, daily volume of tokens burning kept increasing.
Just Imagine, if Bitcoin started with 1billion tokens and kept burned a percentage for every transaction. we are not sure how it would evolve. But truth is SOV can became a bitcoin for blockchains.
The final supply of SOV will be 21 million, After reaching 21 million there wont be any burning. the percentage of token burning depends on current supply of token. SOV has a 3 phase, 21 stage variable deflation schedule. the burn rate will start at 0.05% Over 21 stages it will increase to a peak of 1.25% before decreasing to 0%. Current deflation percentage is 0.7%.
SOV team building SOVDEX on top of SOV token, means SOV token will be like base token on AMM (Auto market maker ). All the tokens are paired with SOV. when a large group of people trading on SOVDEX the price of SOV move volatile and this pushes huge number of price arbitrages between tokens and also burn SOV token faster than we think.
At present SOV team upgrading SOVDEX with XCOR protocol where any token holder can add the liquidity to their favorite token pair and earn dividends on their liquidity.
Keep follow the blog for further Information. Next blog is about SVX token, utility token for SOVDEX.
Note: I am holding SOV as a token holder, I have no relations with SOV development Team.
SOV link: https://www.soveos.one/
Posted from Telokanda Hive Dapp
