How often are Request (REQ) coins destroyed?

Key Points:

• Request Network utilizes a unique mechanism to burn REQ tokens called "Buyback and Burn."
• The burn rate is determined dynamically based on the platform's transaction volume.
• Token destruction reduces the total supply of REQ, potentially increasing its value.

How Often Are Request (REQ) Coins Destroyed?

Request Network's "Buyback and Burn" mechanism destroys REQ tokens at varying intervals based on platform activity:

1. Transaction Fee Collection:

• When users make payments through the Request Network platform, a transaction fee is charged in REQ tokens.
• These fees are pooled and used to fund the buyback and burn program.

2. Token Buyback:

• On a regular basis, a portion of the transaction fee pool is used to buy back REQ tokens from the open market.
• The tokens are purchased by designated liquidity providers and transferred to Request Network's burn address.

3. Token Burn:

• The REQ tokens purchased in the buyback process are immediately sent to a burn address, effectively removing them from circulation.
• This action reduces the overall supply of REQ tokens in the market.

4. Burn Rate:

• The burn rate is determined by the transaction volume on the Request Network platform.
• Higher transaction volume leads to higher fee collection and a more aggressive burn rate, while lower transaction volume reduces the burn rate.

Impact of Token Destruction:

• Reduces the total supply of REQ tokens, potentially increasing the value of remaining tokens.
• Deflationary supply reduces inflation and stabilizes the price of REQ.
• Encourages long-term holding and reduces speculative trading.

Comparison of Token Burning Mechanisms:Unranked Platforms with Token Burning:1. Binance Coin (BNB):

• Burns a portion of its transaction fees and quarterly profits.
• Aims to reduce supply and increase demand, boosting BNB's value.

2. TrueUSD (TUSD):

• Burns tokens that correspond to unredeemed or surplus USDC collateral.
• Maintains a stable supply and peg to USDC.

3. Basic Attention Token (BAT):

• Burns a portion of tokens used for ad payments on its platform.
• Reduces token supply and rewards user engagement.

FAQs:Q: What is the current burn rate of Request Network?

A: The current burn rate varies based on transaction volume, but it is typically between 0.5% and 2% of the total transaction fees collected.

Q: How does token burning affect the price of REQ?

A: Token burning reduces supply, potentially increasing demand and driving up the price of REQ. However, the effect can vary based on market conditions and other factors.

Q: Can Request Network control the burn rate?

A: Yes, the Request Network team has some control over the burn rate by adjusting transaction fees or implementing additional token buyback programs.

Q: Is Request Network the only cryptocurrency that burns tokens?

A: No, many other cryptocurrencies, including Binance Coin, TrueUSD, and Basic Attention Token, have burn mechanisms.