For someone unfamiliar with cryptocurrency, the concept of “burning tokens” might sound a bit strange or confusing. The concept itself is actually pretty simple: sending your tokens to a specific address no one holds the private key for. You need to know that burning Voodoo tokens leads to scarcity and can help reduce the circulating supply, which leads to a more stable price and, in the long run, better price performance. That is why we have already sent 5% of the supply to a burning address. But how exactly do you do this? After reading this simple guide, you will learn how to burn your own Voodoo tokens.
We assume you have already bought some Voodoo tokens earlier. Don’t know how to do that? Read this guide for buying Voodoo tokens.
Requirements:
The first thing you need to check
Burning Voodoo Tokens is only possible on a laptop or desktop with a MetaMask extension installed. It does not matter which internet browser you are on. It will work on Chrome, Firefox, Internet Explorer, etc. Haven’t downloaded the MetaMask extension yet? Click here to go to the official MetaMask page to download the extension for your browser.
Why the MetaMask extension is needed
The MetaMask extension is an extension that will be added to your browser, which you can use as a digital wallet to store crypto. MetaMask supports Voodoo Tokens, and adding them to your wallet is quick and really easy.
1/3 Adding Voodoo Tokens to Your Wallet
2. Once you have clicked on the extension, select MetaMask
3. Then select PulseChain as the network and enter your MetaMask password
4. Click on Import Tokens
5. Insert the Voodoo Token contract address under Contract Address 0x1c5f8e8E84AcC71650F7a627cfA5B24B80f44f00 (The rest will MetaMask fill in automatically.) And then click on the blue button ‘Next’
6. Now click on the blue ‘Import,’ button.
7. Congratulations you have successfully added Voodoo Tokens to your MetaMask wallet. You are now ready to stake them!
2/3 Burning Voodoo Token
2. The Pulsechain burn addres is 0x0000000000000000000000000000000000000369 Please insert this addres in the search balk that says: Enter Public Addres
3. Click on your assets, This will open a dropdown menu
4. Select your Voodoo Tokens
5. Choose the ammount of tokens you want to burn, I decide to burn 1000 Voodoo Tokens.
6. Click on the blue button ‘Next’
7. Now click on the blue approve button
8. After you have clicked on approve, Wait till the transacion got confirmed on the blockchain. After this happends it will show up in your wallet. Once it’s confirmed the burn is succesful, you have made voodoo Supply Reduced and Increased it’s Scarcity, Good job!
3/3 Checking Your Transaction
2. Click on Copy transaction ID. This brings you to a PulseChain Explorer
3. In the explorer you can see all the important transaction details such as the gas fees you paid for it, the ammount you have send , hash, and many technical details.
Importance of burning Voodoo Tokens
Burning tokens reduces the overall supply, which can create a scarcity effect. This scarcity can potentially increase the value of the remaining tokens, assuming demand remains the same or increases. This is based on the economic principle of supply and demand.
As the supply of tokens decreases, each token can become more valuable. This potential for value appreciation can attract more investors and increase market confidence.
Token burning can introduce a deflationary mechanism to a cryptocurrency, countering inflationary effects that may arise from continuous token issuance. This can help stabilize or increase the token’s price over time.
Burning tokens can signal to investors that the project team is committed to maintaining or increasing the token’s value. It shows a proactive approach to managing the token economy and can build trust within the community.
In some ecosystems, token burning is tied to certain activities or transactions (e.g., paying for transaction fees, accessing services, etc.). This can enhance the utility of the token, making it more integral to the ecosystem and ensuring its consistent use.
By associating token burning with specific actions (such as transaction fees), it can act as a deterrent against spam and abuse on the network. This ensures that only meaningful and necessary transactions are conducted, improving the overall efficiency and security of the network.
Regular burning of tokens can help maintain a healthy network by preventing an oversupply of tokens. This can be crucial for the long-term sustainability of the cryptocurrency project.
Final Word
Now you know what token burning is and how to burn your own Voodoo tokens. To reward our community, we plan to give points for tokens sent to the burn address. These points can be redeemed for free merchandise like T-shirts, mugs, and more cool items.
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