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CR Token Burn Announcement
After a great deal of deliberation and compromise, the individuals and organizations on Cyber Republic’s representative Council have voted in the affirmative for a significant burn of Ecosystem Development funds. The funds, also referred to as “Cyber Republic Genesis Funds,” are presently held by Elastos Foundation, but are set to be transferred to CR, whose inaugural CR Council elections culminated in early June. Totaling approximately 16.31 million ELA, the funds were designated to maintaining core Elastos technologies, expanding the Elastos community, and populating its ecosystem with a robust body of dApps and developer tools. Although assigned to the critical initiative of ecosystem development, CR Genesis Funds were and remain outside the circulating supply, and their expenditure therefore constitutes inflation.
In consideration of the inherent tradeoff that exists between ecosystem development and inflationary monetary policy, many CR Council representatives and community members alike expressed concern at the volume of ELA that had been allocated to CR, and to the selling pressure that might be generated by the expenditure of such funds. CR Council representative Elastos Orchard took decisive action on July 6, submitting a Proposal to burn approximately 80% (exact value: 79.67%) of CR Genesis Funds, which they contended would support a strong native token valuation while conserving sufficient funds for annual ecosystem development expenditures. After written materials and critical dialogue were exchanged, the CR Council voted to conduct the 80% token burn.
The 80% token burn is slated to take place on July 30, 2020 at 9:00AM UTC, when the Elastos Foundation will transfer 13 million ELA to the ELA Burn Address, thus reducing CR Genesis Funds to 3.31 million ELA. In accordance with the terms laid out in the CR Whitepaper, the CR Council may only expend 10% of its total funds per annum, which amounts to an estimated 331,000 ELA for the ensuing term – or less than 2.5% annual inflation at maximum.
To learn more the case for the token burn, refer to Elastos Orchard’s Proposal (#10) at the following link:
To dive deeper into the related token metrics, all data is available below:
Burn – Blackhole address
CR ASSETS – New On-chain address for CR Genesis Funds and CR Block Rewards. Every year, 10% is transferred to CR EXPENSES for the CR Council to allocate.
CR EXPENSES – New On-chain address for CR Council annual expenditures. Funds are released for passed Proposals only.
Elastos Foundation – Reserve fund for Elastos Foundation.
Elastos Foundation Daily Operations – Daily Operation address for EF.
CR Genesis Fund – Genesis fund address held by EF.
1.32m per year 35% to AuxPoW 35% to DPoS 30% to CR
Total Supply = 33m + 5.02283105 * Blockheight – Burn Address
Circulating Supply = Total Supply – CR Assets Address – CR Council Expenses Address – EF – EF Daily operations – CR Genesis Fund
Burn Amount = 13,000,000 ELA