What is a Buyback and Burn?

Posted by citizenz7 on Sunday, January 23, 2022 at 11:09 AM | 90 views

A cryptocurrency token is burned when delivered to an unusable wallet address to remove it from circulation. No one can access or assign the address, which is known as a burn or eater address. When a token is transferred to a burn address, it is permanently lost. Burning coins reduces the supply, making cryptocurrency tokens more scarce. So, does burning crypto increase value? Because of the scarcity, prices may rise, resulting in a profit for investors.

Baby PengolinCoin (BPGO) burns tokens two ways. First, through a 1% tax on every transaction goes to a buy back and burn. The fee will be collected from all transactions as a percentage of the transaction token amount. Once the contract holding exceeds 0.1% of the total supply, automated swap will be executed on a sell transaction and BNB will be added to the token contract. Once the BNB balance of the contract exceeds 1 BNB, on a sell transaction 1% of the available BNB balance will be used to buy back tokens which will then be burned.

Secondly, a 1% tax on every transaction will also be burned. This burn occurs immediately upon the execution of any transaction.

The goal of buyback and burn is to increase the value of BPGO by lowering its supply.