BLXM: overview of utility, chapter 2
The deflationary aspect of BLXM
Welcome to our second instalment of the BLXM token utility series of articles. In the last edition, we delved into the narrative of how BLXM tokens work for the typical mobility provider and discussed some of the intricate details of how BLXM operates from under the hood. Today, we will be discussing BLXM’s deflationary nature and some of the reasons that made it that way.
Token Supply from Start to Finish
The BLXM initial supply is pegged at 50 million tokens. These will be tokens sold to the community to help build the bloXmove ecosystem and the automated protocol that powers it.
From the supply of a maximum of 50 million tokens, the team decided that the best course of action for BLXM is to undergo a gradual process of token burn. BLXM tokens paid as transaction fees on the network will be continuously burned at a rate of 10 to 40% of the fee paid in BLXM. This burning process will continue until such a time where there are only 10 million BLXM tokens (20% of max supply) left in circulation.
While BLXM supply remains above the final number of 10 million, it will be the only value unit with which both users and machines interact in our decentralised mobility network. This will change once token supply has been reduced to 10 million:
At that point we will allow other compatible tokens to be used to pay for services and transactions as well.
Why Burn?
The bloXmove leadership has carefully considered the benefits before going down the path of burning down token supply. Some of the important reasons that influenced this decision include:
Protecting BLXM Long-term
A further consideration in our decision to make BLXM deflationary, is our commitment to protect its value long-term. Although we believe bloXmove will soon be in many regions serving enormous numbers of people, we are also conscious that an overflow of tokens especially in the formative period of the ecosystem could have a detrimental effect on BLXM token value. Gradual and consistent token burns counter this possibility, and create fundamental dynamics supporting the value of the token.
Rewarding bloXmove Early and Long-term Backers
As a responsible protocol, we take the confidence of our investors very seriously and we remain eager to show that such confidence is well-placed. By burning up to 40% of the earned tokens from transaction fees, we protect our community from inflation ensuring that there is not only a hard cap on max total supply, but BLXM tokens will also become scarce over time.
Team Confidence
The bloXmove team is here for the long haul. The journey to a fully functional and maximally efficient decentralised world of urban mobility is a calling that we are fully invested in. What better way to show our confidence in the solutions we are creating than by playing the long-term game? While some teams may choose for early gratification and payouts, our commitment to burning most of the minted BLXM tokens clearly demonstrates that we are not just runners of this project, we also feel a clear sense collaboration and co-ownership with the increasing bloXmove community.
The team is working hard perfecting the bloXmove suite of products and enhancing our protocol capability, with our community at the top of our considerations.
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