Instead of conducting an ICO, close to 60 million MAX tokens were distributed to the community through transaction mining from 2018 to 2019. We believe enough tokens have been distributed to the market and decided to burn more than 90 million MAX token that were originally allocated to the transaction mining program on November 27, 2019. This amount represented close to 20% of total supply.
The Bitcoin Block Reward halving event on May 11, 2020 reduces the reward per block mined by 50% from 12.5 BTC to 6.25 BTC and only occurs once every four years. We burned another 50 million MAX tokens (~10% of total supply) on May 20, 2020 to coincide with this event.
Burned tokens will be permanently removed from the total supply of MAX Token which reduces the amount of tokens that can enter circulation. The total supply can be viewed here: https://etherscan.io/token/0xe7976c4Efc60d9f4C200Cc1bCEF1A1e3B02c73e7
By reducing the total supply of MAX token, it will become more scarce.
MAX Token was conceived as a means to share the economic benefits of trading with clients, create a mechanism for trading discounts, and to encourage the growth of the MAX ecosystem. The destruction of unused or unissued tokens has been integrated into a number of token offerings. This also removes a potential market overhang of these tokens being sold on the market at some point in the future and pressuring price.
What do I need to do?
Nothing. The burn will be executed by MAX.
What will this do to price?
Token burns are generally viewed positively by the market because total supply is reduced. We can not guarantee that the price will increase or decrease - the market will decide. Recent token burns include XLM, EOS, BNB, TRON and XRP.
Proof of Burn
The MAX Token smart contract employs a burn function ensuring a transparent destruction process. Coin burns are recorded permanently on the ETH blockchain providing MAX Token holders with a Proof of Burn. As soon as the coin burn is announced, MAX Token holders will be able to verify the MAX Token ERC 20 token burn transaction on any Ethereum blockchain explorer. Like all blockchain transactions, burn transactions are irreversible, censorship resistant and permanent. Below is the transaction ID’s to show proof of burn.