The ResearchHub Foundation proposes the RSC token burn mechanism to increase value for holders.
The recently announced RIP-23 governance draft will implement the burning of 100% of the collected transaction fees, expected to be executed weekly, to create scarcity and enhance the value of the RSC token.
MAIN CONTENT
The ResearchHub Foundation proposes the RSC token burn model through the RIP-23 draft.
Specific details about the implementation method will be announced on Snapshot.
What is the ResearchHub Foundation and why are they proposing to burn the RSC token?
The ResearchHub Foundation is the developer of the DeSci project specializing in decentralized scientific research. The proposal to burn the RSC token through the RIP-23 draft aims to control supply and increase token value for the community.
Token burning is a common strategy in the cryptocurrency industry that helps reduce the total circulating supply, thereby creating sustainable upward price pressure. With experience in developing DeFi and DeSci projects, ResearchHub shows a deep understanding of governance mechanisms and market dynamics in cryptocurrency.
How does the RIP-23 draft propose the token burn mechanism?
The RIP-23 draft aims to implement the burning of 100% of the transaction fees collected weekly from the activities of the ResearchHub Foundation. This is an automatic mechanism, ensuring that all these fees do not return to the market.
This token burn process will be detailed on the Snapshot platform, where community members can participate in discussions and voting. The burn mechanism creates effective supply reduction pressure, enhancing trust and long-term value for the RSC token.
Implementing the mechanism to burn 100% of transaction fees not only helps reduce supply but also enhances the experience for token holders, reinforcing sustainability for the project during growth.
Representative of the ResearchHub Foundation, 8/2024
Details of the announcement and the role of Snapshot in project governance?
Snapshot is used as the official governance platform of the ResearchHub Foundation to announce the RIP-23 draft and receive feedback, voting from the community. This is a popular method to ensure transparency and gather expert opinions before implementing significant changes.
Through Snapshot, the community of RSC token holders can directly participate in governance, influencing strategic decisions such as the token burn mechanism, demonstrating democracy and enhancing reliability for the long-term project.
How does the token burn mechanism affect value and users?
Burning 100% of transaction fees reduces the RSC supply in the market, thereby creating natural upward price pressure for the token. This also encourages users to hold tokens long-term instead of selling off.
This reinforces investors' confidence in the growth potential and increases the attractiveness of RSC in the DeSci ecosystem. However, long-term effectiveness depends on the level of acceptance and community activity on the project.
Frequently Asked Questions
What is RSC token burning?
Burning the RSC token involves removing a portion or all of the tokens obtained from transaction fees from circulation, aiming to reduce supply and increase value for the token.
Who decides on the token burn through the RIP-23 draft?
The community of RSC token holders will participate in voting through the Snapshot governance platform to approve or reject the RIP-23 draft.
How does token burning affect holders?
Reducing supply helps increase token value, creating incentives to hold tokens long-term and increasing liquidity in the market.
What is Snapshot and what is its role in the project?
Snapshot is a decentralized governance voting platform that allows the community to participate in deciding policies and project changes transparently.
In which field does the ResearchHub project operate?
ResearchHub develops the DeSci project to support scientific research based on blockchain technology and decentralized governance.
Source: https://tintucbitcoin.com/rsc-token-de-xuat-co-che-dot/
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