WOX token goes deflationary! A move in the right direction…

What is your favorite demand and supply improvement strategy? Well, let me guess – token burns? Yes, ‘burn baby, burn!’. Top cryptocurrency exchanges; Houbi and Binance burn hundreds of million dollars worth of tokens regularly. Many other cryptocurrency projects have adopted an exact strategy to improve the demand and supply metrics of their native tokens. While this has worked well for most of these projects, a number of them only realize at the end that a successful project is not just built by sending tokens to the furnace and screaming “burn…”

Generally, a good utility will drive demand; regardless of the supply, value will increase exponentially and relative to the demand a use case is able to command. A number of projects with huge token supply have seen rapid growth over the years; Cardano (ADA), Ripple (XRP), chainlink (LINK) to mention a few. Fair enough, these mentioned projects have no record of token burns. Value keeps growing due to the utility they present. But token burns can hasten this growth as it actively reduces supply and enhance the effect of existing demand. Token burn announcements have also driven demand in some cases; however, these are rarely genuine and in most cases are just impulsive buys by expectant investors.

True demand comes from utility marketed correctly. Token buyback and burns is another one of the numerous marketing strategies, a brilliant one to be frank. Burning tokens have proven to be a very efficient tool to sustain demand.

After a successful launch and commencement of liquidity farming, Wox-exchange has announced plans for their token buyback and burn program. Relative to other projects', Wox token buyback is a bit unique.

Wox token is backed by TRON, each Wox token in circulation is backed by one TRON. The token price is however, not pegged to the value of tron. The backing means WOX token’s value is maintained at the price of tron. The buyback program is meant to maintain this price. As the market recovers, WOX token can exceed this price as it is not ‘pegged’ to it. But in case of value reduction, the buyback program comes in. The team’s plan is in line with the projects initial proposition.

The buyback programs means that Wox token will have a rather constant demand and the burn means the token’s total supply will be ever decreasing. This works well for the tokenomics and the team’s activities will have a direct positive impact on the token’s price.

Wox exchange is evolving, this is another move in the right direction. WOX is a developing project with a responsive team piloting its growth. Be a part of something special. Learn more about WOXDEFI