How often are Elastos (ELA) coins burned?

Elastos employs a burning mechanism to reduce the circulating supply of ELA, increase its scarcity, and fund ecosystem development.

Dec 31, 2024 at 07:31 pm

Key Points

• Elastos Smart Contract Platform
• ELA Tokenomics
• ELA Burning Mechanism
• Benefits of ELA Burning
• FAQs

Elastos Smart Contract Platform

Elastos is a blockchain platform designed to support decentralized applications (dApps) and digital identity management. The platform consists of a core blockchain, a smart contract virtual machine, and a distributed file system. Elastos aims to create a secure and scalable ecosystem for dApp development and deployment.

ELA Tokenomics

The native cryptocurrency of the Elastos platform is ELA. ELA is used to pay for transaction fees, staking rewards, and dApp development. The total supply of ELA is 33 million tokens, with approximately 21 million tokens currently in circulation.

ELA Burning Mechanism

Elastos employs a burning mechanism to reduce the circulating supply of ELA and increase its scarcity. ELA burning occurs when a portion of the transaction fees collected on the platform is permanently removed from circulation. The burning mechanism is intended to:

• Reduce inflation by decreasing the overall supply of ELA
• Increase the value of ELA by increasing its scarcity
• Fund ecosystem development by using the burnt tokens to support dApp development

Benefits of ELA Burning

Burning ELA offers several benefits to the Elastos ecosystem:

• Increased Token Value: By reducing the circulating supply of ELA, the burning mechanism increases the value of each remaining token. This creates an incentive for holders to HODL ELA, reducing sell pressure and supporting price stability.
• Enhanced Security: The burning mechanism contributes to the security of the Elastos platform by reducing the number of tokens that could be targeted by malicious actors. By decreasing the supply, Elastos makes it more difficult for attackers to accumulate a significant stake in the network.
• Improved Ecosystem Health: The burning mechanism allocates a portion of burnt tokens to fund ecosystem development. This supports dApp development, innovative projects, and community initiatives, contributing to the overall growth and health of the Elastos ecosystem.

How Often Are ELA Coins Burned?

The frequency of ELA burning is not fixed but is determined by the revenue generated from transaction fees. The amount of ELA burned each time varies based on the fee revenue collected. ELA burns typically occur on a quarterly basis.

FAQs

• Q: What is the total supply of ELA?
  A: The total supply of ELA is 33 million tokens.
• Q: What is the current circulating supply of ELA?
  A: The current circulating supply of ELA is approximately 21 million tokens.
• Q: Why does Elastos burn ELA coins?
  A: Elastos burns ELA coins to reduce inflation, increase scarcity, and fund ecosystem development.
• Q: How often are ELA coins burned?
  A: ELA coins are typically burned quarterly, with the frequency and amount determined by transaction fee revenue.
• Q: What are the benefits of burning ELA coins?
  A: Burning ELA coins increases token value, enhances security, and improves ecosystem health by supporting dApp development and innovative projects.