eosDAC burns $56 million worth of tokens....what does this mean for you?

in eosdac •  7 years ago  (edited)

Did you see this on Twitter today?

Apparently, eosDAC has decided to burn 238,080,989 tokens today, at a current price of $0.233, that's approx ~$56 MILLION USD. Here's the information on the Ethereum block explorer.

https://etherscan.io/token/0x7e9e431a0b8c4d532c745b1043c7fa29a48d4fba?a=0x0000000000000000000000000000000000e05dac

They send the coins to the invalid address 0x0000000000000000000000000000000000e05dac which will not have a private key thus the tokens have been rendered useless and frozen forever..

So, rather than the previous available supply of 1.2 billion tokens (1,200,000,000), the new circulating supply of eosDAC tokens is 961 919 101.545.

You can read more about the entire eosDAC airdrop and burn here:

https://steemit.com/eos/@eosdac/eosdac-airdrop-and-burn

The eosDAC team could have easily kept these tokens for themselves, and I think it shows more about their character that they took the time to identify the addresses which were either unsupportive (exchanges) or where there was a conflict of interest (BlockOne).

The eosDAC community, and launch team, identified 48 wallets belonging to either B1 or exchanges who did not support the airdrop were withheld. However, many exchanges supported the airdrop and eosDAC is grateful to all the operations that have passed the tokens onto their clients.

So what does this mean to you? Well, this effectively reduces the supply of eosDAC tokens which creates upward price pressure. Think about it. There X demand for the tokens and 1.2 billion supply. We still have X demand but now have have 238,080,989 less tokens potentially available. It will be interesting to see if there's a bit of a price rally in eosDAC tokens over the next ~2 weeks.

I dont know about you, but I'm rly freaking excited about the launch!

https://www.eoscountdown.com/

In Liberty,
Ashe

Check out my podcast!

Website: https://www.LibertyEntrepreneurs.com

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https://www.AsheOro.com

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Very interesting experiment by EOSdac from the get go, this coin burn further proves they are doing this for the right reasons. Now the question is will the EOS community embrace the value a DAC as a BP has and will we see a bunch of copycats, I think there is something similar from one of the Korea (KEOS).
Regardless this EOS experiment is going to be a fun ride.

it's going to be a very fun ride. Can't wait for the launch. Feels like i've been waiting forever. I guess that's what happens when you read about EOS every day for 8 months.

What is EOSdac?

Oh shit.

They done did it boi.

Wow. Where to buy? :) I'm getting my spending hat ready to buy.

haha, yeah if they get elected BP (a big if, imo) then this token may fly. I also heard a rumor that it will be added to the Bithumb exchange.

Sweet, that's a pretty big deal! I've got so much signing up to do lol

Think I'll advertise and take a couple small side gigs real quick to get some cash built up.

Team eosDAS have big heart to burn $56 million worth token. They showed great character. may be the move is inevitable for their business. It gives transparency and to remain in business you show a lot of character. from simple economics point of view their token price will be high without considering the other fact like they send the coins to the invalid address(it may damage their repute)

A great strategic move from an economic minds, the chain of supply has been curtailed, this will directly lead to a higher demand. It the best time to do cool business.

That's great update @ashe-oro I was waiting for the price to come down to buy more eosDAC tokens. But after reading your post I think I should buy some more tokens now. Appreciate your post and yes I re-steemed it.

Cheers!!!

thank you @techstack! Good luck and I hope you can buy more at lower prices. They just made it harder for ya ;)

eosDAC Hodling now with less overhang. I am OK with That. Let's Fire this EOS UP @ashe-oro and get the party started............

first drink's on me!

  ·  7 years ago (edited)

Of course the tokens were worth less than $56M USD. If they were to sell them the price would drop drastically.

Well the normal law of supply and demand states that the lower the supply the higher the demand. And demand drives the price..

Owk I must say that this was a great initiative by them but why can't steem do a thing like this so as to experience an upward trend?

It's simply economics that less supply puts an upward pressure on price but I don't see many coins doing this except this one I just heard about now.

Any significance to that sir @ashe-oro?

Good info. I first heard the "burn" rumor from youtuber, The Awakenment,

Turns out it's true! I'm holding my eosDac.

eosDAC is going to be a long term top 21 block producer!

EOS is the biggest crowdfunded project in the history of mankind. It's voluntary exchange, crazy high Github activity according to https://cryptomiso.com and the project is already worth more than the GDP of 1/3 of the countries on this planet and the product isn't even out yet. Your excitement is justified.

Tron is playing catch up though. It seems like the'd do well too.

They deliver a equilibrated and transparent process, and certainly a benchmark for future EOS airdrops. I don't see a huge price spike, since they had already announced to burn surplus tokens, and this is priced in already.

I like the token burn concept. Glad to see it being used. I seem to recall some Steem burns in the past.

Thats an interesting move for sure.

Good for the price imo