Anyone can permanently reduce the supply of Bitcoin.com’s ecosystem token VERSE by triggering the Verse Burn Engine.
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How to use the Verse Burn Engine
Triggering a Burn
Connect your Bitcoin.com Wallet or other web3 self-custody cryptocurrency wallet (eg. MetaMask). Ensure you have at least 10,000 VERSE tokens in your wallet.
Select “Trigger a Burn” and follow the instructions.
And that's it! Once you've approved the transaction, the engine will start up, then incinerate any VERSE it has accumulated since the last time a burn was triggered.
Contributing to the Burn Engine
Connect your Bitcoin.com Wallet or other web3 self-custody cryptocurrency wallet (eg. MetaMask). Ensure you have some VERSE to contribute.
Select “Contribute to Burn Engine” and follow the instructions.
And that's it! Any VERSE you contribute to the Engine will accumulate until someone triggers a burn.
What is the Verse Burn Engine?
The Verse Burn Engine is a decentralized application (DApp) that allows anyone to trigger “burns” of VERSE tokens. When tokens are burned, they are no long accessible, meaning the total supply of VERSE is reduced forever.
The Verse Burn Engine gradually fills with VERSE tokens over time. Anyone can initiate a burn of the tokens in the Engine by sending 10,000 VERSE to the Engine.
What happens during a token burn?
When you trigger a token burn, the VERSE token you have sent to trigger the burn — together with any tokens already in the Verse Burn Engine smart contract — are permanently removed from circulation, reducing the total supply of VERSE forever.
Behind the scenes, it works like this:
When a burn is triggered, all VERSE tokens in the Verse Burn Engine smart contract are sent to the “null” address (0x00..00.) This is an address that no one has access to, including the user who triggered the burn. Tokens sent to the null address cannot be used, transferred, or accessed by anyone, ever. The term "burn" is symbolic in the sense that the tokens are effectively destroyed.
Is using the Burn Engine dangerous to my VERSE?
Only the VERSE tokens you contribute to the Verse Burn Engine or use to trigger a burn will be burned. All other VERSE tokens in your wallet are safe.
Are there any rewards or incentives for participating in token burns?
You may be eligible for future rewards such as NFTs for initiating token burns.
Where do the tokens come from that get burned?
The Verse Burn Engine is gradually filled with VERSE tokens via the following supply reduction strategies:
Buyback and Burn
This source uses Bitcoin.com assets (e.g. revenue and liquidity deployed in the market) to buyback VERSE from the open market on Verse DEX, third-party decentralized/centralized exchanges, or in OTC trades. This VERSE is sent to the Verse Burn Engine.
Sustainable Supply Reduction
This source allocates VERSE from the Ecosystem Fund to the Verse Burn Engine in a manner that is proportional to a given activity in the Verse ecosystem, as well as in a manner that ensures that the reduction of supply is sustainable over the lifetime of the token.
Anyone can contribute VERSE tokens to the Verse Burn Engine. These tokens will be burned when someone triggers the Engine.
Can other projects contribute to token burns on the Verse Burn Engine?
Absolutely! Other projects can join in by contributing VERSE tokens to the Burn Engine, making each burn event even more spectacular.
Is there a minimum amount of VERSE tokens required to initiate a burn?
Yes. You'll need at least 10,000 VERSE tokens in your wallet to initiate a token burn using the Verse Burn Engine.
Is there a fee associated with participating in token burns?
You will need gas to pay for transaction fees on the Ethereum network. Gas fees vary depending on network traffic.