Burning to Bring Value 🔥 🔥 🔥

The REQ Token

The process of burning REQ on

The BURN

  1. Adam owes Elise money for the beer she bought him after work. (This is a real invoice that you can see here.) So Adam sends Elise his Public Key (to his Meta Mask wallet)and she fills out the invoice on the Request Network and sends the invoice to Adam. Adam approves the invoice and sends the requested amount ETH.
  2. This invoice is transacted on the blockchain, which incurs the standard gas price, both ways. In addition to the gas fee, there is a network usage fee (paid by Elise in ETH), which can be anywhere from 0.1–0.005%, but never more than $1.50. The network fee in ETH is stored in a Burner smart contract. You can see the code for the Burner smart contract here. So to sum up what has happened so far; an invoice has been sent/paid, and the network fee has been collected and stored in a Burner smart contract.
  3. Anyone can go to reqtokenburn.com and initiate a burn. It will cost you a little bit of ETH, but it is cool to know that anyone can do this. I made a short video demonstrating how to do this. The Request Network Foundation can also call the burning contract at random times.
  4. When the Burner contract is called, it will swap the full amount of stored ETH for REQ. This happens by a market order being initiated on Kyber Network. So yes, this is all automated. You, me or the Foundation clicks on the “R” on reqtokenburn.com, you pay a small fee, the contract is initiated, and the market order is placed to purchase REQ for the full amount of ETH in the contract.
  5. The REQ is now stored in the burner contract and the REQ is burned. Below is a diagram showing how all of this takes place.
Diagram Illustrating the above 1–5 steps
  1. What is the point? The point is deflation. In short, the value of REQ will go up as the supply goes down. Here is a good Reddit thread speaking to this. If you want to hold REQ, you can go over to Ethex.market and purchase some. Ethex is a DEX (decentralized exchange) I work for. We only feature #usefultokens, so we are proud to have REQ on our exchange.
  2. Aren’t they going to run out of tokens since you are burning them? No! haha. Put your Satoshi Nakamoto hat on, and think like you are in blockchain/crypto land…. You can always add zeros to the decimal place….infinitely. Yeh, that’s a scary thought, but it is true. Right now the REQ token has 18 decimals in it. The team stated that if they need more, they can do a hard fork.

Wait, I still don’t get it

Incentives Bringing Value

The Three Options

  1. Naturally, the incumbent is number one. Because they earned it, or did they? PayPal, Venmo, Visa, American Express, so on and so forth. These are payment services and credit cards that have done a phenomenal job of making themselves a necessity in our lives. Even though a lot of times they do not have our best interest at heart and do not “share the wealth”. This is a typical top down model.
  2. The open source free model. A project is built out of the desire to help others and provide a free service. This is a great idea, but this does not really put food on the tables for the founding team. It also has the potential to fail do to the lack of resources and the chances of scaling are slim, but some do survive.
  3. The token economy that builds a functioning product that delivers a quality service that can scale. The monetary benefactors of this service are the founding team as well as you and me (if we hold REQ). In this model, the wealth is distributed to those that are holding REQ, while giving us a vested interest and incentivizing us to help with scaling the project.

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Data Driven w/ strong Fundamentals, crypto evangelist, never ending learner, music and art nerd. I also play good tunes for cool people. twitter:@adamgdev

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adamgdev

adamgdev

Data Driven w/ strong Fundamentals, crypto evangelist, never ending learner, music and art nerd. I also play good tunes for cool people. twitter:@adamgdev

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