Cryptoindex Whitepaper
  • INDX Whitepaper
  • Abstract
  • Content
  • Introduction
    • Indexes: Strong in Traditional Finance, Blue Ocean in Crypto
    • Intended audience
  • Platform Features
    • Benefits
    • Functionality
    • Index Creation and Management Process
    • Fees Structure
    • Changing the Composition of Indexes
  • INDX Tokenomics
    • INDX Tokenomics
    • Allocations, Lockup, and Vesting
    • Core Utility of INDX
    • Additional Utility of INDX
  • More details about INDX utility
    • Creators Subscription
    • Index Holders Fees
    • Incentivization Program
    • Additional Rewards for Index Holders
    • Additional Rewards for LPs
    • Advertising Promotion
    • Referral Program
    • Burning
  • Security
    • Security
  • Risks
    • Risks
  • Project Roadmap
    • Project Roadmap
  • Legal Disclaimer
    • Legal Disclaimer
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  1. More details about INDX utility

Burning

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Last updated 9 months ago

Burning is a strategic mechanism employed by the Cryptoindex platform to maintain and enhance the value of the INDX token by reducing its total supply over time:

  1. Percentage of Net Profit Allocation:

    • Percentage: The platform allocates 5.0% of its net profit to token burning.

    • Purpose: This allocation aims to regularly reduce the circulating supply of INDX tokens, contributing to an increase in their scarcity and, potentially, their value.

  2. Burning Regularity:

    • Frequency: Tokens are burned on a monthly basis.

    • Procedure: At the end of each month, the platform calculates the net profit and allocates 5.0% of this profit to buy back INDX tokens from the market. These tokens are then permanently removed from circulation by sending them to a null contract address, ensuring they can never be retrieved or used again.

  3. Transparency and Reporting:

    • Public Announcements: Every burning event will be publicly announced through the platform's official communication channels.

    • Burn Reports: Detailed burn reports will be published after each event, outlining the number of tokens burned, the transaction details, and the updated circulating supply of INDX tokens.