OVR Upgrades Its Token Economics
OVR has decided to upgrade its token economics to make its own tokens more rare and valuable. Last May, the OVR team burned about 1 million OVR tokens to celebrate the first six months of the project. Now it is announcin...
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OVR has decided to upgrade its token economics to make its own tokens more rare and valuable.
Last May, the OVR team burned about 1 million OVR tokens to celebrate the first six months of the project. Now it is announcing an exciting decision to make token burn an integral part of its token economics.
On November 1, a full-fledged token burn program was officially kicked off.
The project team has decided to take 50% of the revenue generated from the ongoing sale of OVRLand on a monthly basis and manage it in the following way:
- 40% is directly used to burn tokens
- the remaining 10% is used to incentivize the sale of OVRLand.
A sort of “lottery” takes place in which one of the OVRLand buyers is drawn each month, with the use of Chainlink VRF, to win the remaining 10% of the revenues.
It goes without saying that the more OVRLands tokens an investor has, the better his chances of winning 10% of the revenues.
The burning program seems to be a very good way to accelerate the token economics of the project.
However, one might wonder how sustainable this periodic burning can be and, as a direct consequence, how many OVRLands can be sold.
The answer to this legitimate doubt is very reassuring.
Data tells us that there are more than 1.6 trillion OVRLands covering the surface of the planet but not all of them can be sold, such as those covering oceans, deserts, rainforests etc.
Nevertheless, by intentionally making a low estimate and considering only the OVRLands points of interest recorded by Open Street Map, we still arrive at around 100 million.
If we were to be even more cautious in making assumptions, we might consider that none of these are larger than one OVRLand.
Starting from this figure and considering 10 OVRs with a price of $1 each, we would arrive at 1 billion in sales, resulting in 400 million OVRs to be potentially burned against the 100 million of the current total supply.
OVR’s new token economics are already making current and future investors dream.
For the more sceptical, here is the link to the smart contract that does the burning:
https://etherscan.io/token/0x21bfbda47a0b4b5b1248c767ee49f7caa9b23697?a=0xd56e993edbe4a23fb527b8ad92a9157a0a6e350d
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