If you have been with us right from the start, you may have already witnessed the previous token burn. If you are a new investor, this might be something new for you. Token burn is a way in which a company limits the supply of available tokens, adding value to an investor’s portfolio.
Stating simply, a token burn is a process where we destroy a few tokens periodically. We expect to sell a set amount of the tokens each month. There is a maximum value of tokens that we can sell, so this is set as the limit. If there is an increase in value, we cannot sell beyond a point, and we have some tokens left with us.
Alternatively, the value may not increase, and we are still left with tokens after the sale. In both scenarios, we have two options. The first one is to carry the remaining tokens forward to the next month. Or, we can destroy the tokens, so that they become unusable, even for the creators of PCL.
It is seen that destroying, or performing a token burn, has an impact on the valuation of the currency. When the supply of the tokens goes down, the demand is met by fewer tokens, leading to a value addition to the portfolio. And that is what any investor wants – value creation. Read more about the process of a token burn here.
For the month of April, we had set a cap of 2B tokens for sale. The main reason for this was a sudden bear market witnessed by all major Cryptocurrencies. This stopped the value of PCL from increasing, so Scenario #2 was triggered. After sale, and adding a predetermined number from the ICO phase, there were 3.032 B tokens that were destroyed today.
You can watch our developer, Mohamed Amine explain the process in a brief video below.
In the coming months, we plan to destroy even more tokens, so as to add maximum value to your portfolio. So an advice for an investor is, hold on to your tokens as you might miss out on something big.
In the coming few months, this is going to be the planned burning of tokens
As you can see, the total number of tokens that would be burnt in the next few months is going to reduce the supply to a great extent. So, as an investor, for this or any other project, you should focus on 3 things.
So investors, please watch the webinar recording if you have not done so already.