Houbi, one of the world's oldest cryptocurrency exchanges, has taken steps to reduce the supply of the token that powers its decentralized platform, Huobi Token, in a quarterly burning event.
According to a company statement, the exchange removed 14,011,700 amount of tokens from 310,318,300 market supply, at a rate that is 116 percent greater than it did last quarter.
Ever quarter since early 2018 when the Singapore-based exchange introduced Huobi Token, it has spent 20 percent of its quarterly revenues buying back outstanding tokens.
Revenues fluctuate quarter to quarter, meaning Huobi does not always burn a consistent amount.
Beginning on April 15, Huobi held eight token burning events of a total 21,356,800 HT, more than the 6,474,800 HT it repurchased in the first quarter.
The repurchased tokens are stored in a visible ethereum address, dubbed the Huobi Investor Protection Fund, and act as a reserve fund.
The company cited increasing membership to Huobi Prime and Huobi FastTrack programs - generators of fees - as well as a productive spring for the $504 billion trading volume Huobi DM platform.
"The rest of 2019 will see even more improvements and innovations coming from Huobi," said Li, pointing to coming upgrades to the Huobi Finance Chain, a decentralized finance public blockchain, and improvements to the high frequency algorithmic API. In a separate post, the company said this token burn cycle "Will be the last time HT tokens will be destroyed using the traditional buyback method."
Going forward, the company looks to use revenues generated in the HT Tiered Fee deduction program to directly burn tokens.
The native tokens are used to gain access to "Premium coins" through Huobi Prime, as security deposits for merchants on its over the counter exchange, Huobi OTC merchants, and to vote.
Huobi Burns 14 Million Huobi Tokens Amid Revenue Gains
Published on Jul 15, 2019
by Coindesk | Published on Coinage
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