Buy Back & Burn: Increasing BRIDGE Token Utility
To provide the highest value for BRIDGE holders and investors, the Cross-Chain Bridge team is working on different initiatives, and today we are thrilled to announce that 15% of all fees collected from token bridgings (independent of the asset bridged) will be used for BRIDGE Buy Back & Burns.
BRIDGE Buy Back & Burn
Until now, 15% of the fees have been collected, and the community was able to trigger a Buy Back & Burn of TXL tokens with the collected tokens. To further drive the value of BRIDGE, this was changed today for BRIDGE.
With every token bridging via the Cross-Chain Bridge, the user pays a protocol incentive or bridging fee. 15% of all fees collected from token bridgings (independent of the asset bridged) will be used for BRIDGE token Buy Back & Burns.
Anyone can trigger the swap of those bridging fees to BRIDGE & burn them. The trigger has to be done once per collected token & network. Check it out here.
The fees dedicated to Buy Back & Burn will be collected in the ERC20 bridge and will only be pulled to the Buy Back & Burn contract when someone triggers the Buy Back & Burn for a specific token.
What is Buy Back & Burn?
As the name suggests, the term Buy Back & Burn is a mechanism whereby a crypto project uses treasury or own account resources to re-acquire their own tokens from the open market and afterwards eliminates (“burns”) them from circulation.
This mechanism has two effects:
1. The acquisition is a buy transaction on an official exchange.
2. Afterwards, with the “burn” transaction, the total number of tokens in circulation gets reduced, and consequently, the available tokens are scarcer.
The concept encourages long-term deflation and growth.
The Cross-Chain Bridge
The Cross-Chain Bridge is a liquidity-pool-based, security-focused bridge and (in the future) community-governed bridging protocol to connect an increasing number of blockchains and, eventually, all major blockchains with each other. The protocol incentivizes providing liquidity for both projects and end users as well as provides a seamless bridging experience for tokens and NFTs — by bringing fee participation, yield farming, self-listings for projects and building other innovative features into the world of bridges.