A well-known payment platform ‘Zebec Protocol’ has announced that it would purchase and burn its ZBC tokens. The purpose of taking this move is to provide support to the price of the token. In this respect, Zebec Protocol will utilize half of the profit acquired by it to purchase back the ZBC tokens every month.
Zebec Protocol to Carry out ZBC Buybacks and Burning
Following the per-month purchase of the tokens, they will be delivered to a burn address. The respective update will assist make the tokenomics mechanics deflationary and more ETH-like. A deflationary token is considered to be one having its supply organized to be lowered with time, assisting in the maintenance of the price. Such deflation, which increases the price, is fundamental for crypto assets.
If there are no deflation mechanics implemented on a token, it can increase till it does not have any worth. Nonetheless, a deflationary token also has some other benefits. A deflationary token can provide incentives to the investors who can hold it rather than sell it off rapidly. This can generate scarcity, elevating the demand as well as increasing the price of the token. This means that those holding the tokens will have the benefit in the form of a price rise with time.
ZBC Token Can Be Used on Zebec Chain and Nautilus Chain
The latest token-burning facility will assist in minimizing the ZBC tokens’ supply to guarantee that the price remains resilient. Zebec Protocol’s ZBC token will be utilized as a governance and utility token on Zebec Chain and Nautilus Chain. The holders can use the ZBC token for governance on the Zebec DAO. For this, they can vote on the latest proposals as well as rank the proposals in terms of significance through the “vote staking” procedure.
