SEATTLE, Aug. 30, 2022 /PRNewswire/ — Joel Kasr, KaJ Labs founder and creator, has proposed burning/reducing Litho’s max supply to 500 million from 1 billion once the main network goes live in 2023. The proposal is part of Litho’s updated roadmap for continued, long-term network sustainability.
The proposal aims to decentralize the Lithosphere blockchain while also increasing the utility of the chain’s native token – LITHO coin. The token burn would also improve Litho’s intrinsic value by burning a portion of gas fees. Litho holders will decide how to dispatch gas rewards once the Litho DAO has been established.
The measure may or may not be implemented, pending a vote. The exact mechanism of the burn would be decided at a future date, along with the percentage to be burned. It would result in less transaction fees since the coins would cease to be accessible, and work toward more stable transaction fees.
Taking the tokens out of circulation would significantly increase the value of remaining LITHO tokens, while providing a path toward deflationary economics, and increasing purchasing power. The plan would work similarly to a buy-back of company stock, in which value increases due to a smaller supply.
The proposal to burn half of Litho’s 1 billion supply could potentially be a gamechanger and a strategic move toward the continued long-term sustainability of the cryptocurrency. It would increase LITHO’s utility while stabilizing fees.
Lithosphere is the next-generation network for cross-chain applications powered by AI and Deep Learning.
KaJ Labs is a decentralized research organization focusing on AI and blockchain technology. We’re driven to create innovative products that work for the greater good around the globe.
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SOURCE KaJ Labs