Over the past years, we have observed changes during the EDC development. The coin went through several phases of the market cycle, and currently set experienced growth gaining 8.90% in terms of USD and 6.29% in terms of Bitcoin within the last 24 hours.
The number of EDC coins in circulation has reached almost 47 million, which is just under 50% of the total supply (100 million EDC). After the rest of the coins have been issued, no more coins will be produced.
The coins generated by EDC Blockchain are used to exchange for goods and services, to participate in auctions, are traded on exchanges and staked. The more coins are issued, the more participants use them, the more the price of the coin increases. In order to support the price growth, EDC Blockchain uses a coin burning mechanism.
Incentives for burning coins
Burning coins is of a technical and economic nature. This approach means removing a certain number of coins and increasing the value of the remaining coins. This happens due to the fact that the issuance of coins is limited.
A similar concept is applied in the traditional financial market, where a public company can buy back its own shares to reduce the total number of shares. This potentially increases the value of the stock and helps owners increase their profits.
How EDC Blockchain coins are burned
The burning process is carried out by sending coins to a special coin-burner account, from which it is impossible to withdraw. Coins are burned as follows:
- 90% of the fees for the transactions, including regular, anonymous, and transactions with checks;
- 50% of EDC coins spent on BID purchases on the EDC Auction platform;
- Any number of coins burned by users, who are aimed at increasing the value of the coin. Transfer coins to the coin-burner account to burn any amount of coins. No commissions charged when making transactions to a burner account;
- Periodic burning, which the EDC Blockchain notifies in advance.
Crypto projects applying the coin burning method
For each transaction in the Ripple network, a part of its commission is burned, while Stellar burns its XLM tokens for each new transaction on the network. The coin that “burns” quarterly is BNB which belongs to the well-known exchange Binance. The exchange burns 20% of the profits during trading with its own cryptocurrency and plans to carry out the burning until the supply is reduced to 100 million BNB.
Burning gives an undeniable advantage in the form of coin growth to users who already own EDC coins, and to potential users who can purchase the coin at the current exchange rate and acquire the value that the coin will have after reducing its amount in circulation.
We would like to thank all the community members who properly understand how EDC Blockchain works, as well as who believe in the project and its future, who accumulate their coins and increase their income through staking. We make sure that we can do more together if we move in the right direction, using the EDC coin as a tool to pay for goods and services and using additional EDC Blockchain tools.
The EDC price we are observing now is not a limit, but an indicator for testing new price peaks!