Burning is the process of removing a specific amount or portion of a token from its circulating supply. It is a common practice in the crypto industry to decrease the circulating and total supply of a token, hence making it more scarce and deflationary.
Some projects burn several percentage of their total supply after TGE (Token Generation Event), while other projects burn their supply based on a predetermined percentage of their quarterly earnings to decrease the circulating amount of their token.
Kommunitas already has a burning mechanism in their staking pool, where a 20% penalty will be charged to users who perform a premature withdrawal before their stake is due in the staking pool. This 20% will be entirely burnt!
Now, Kommunitas is proud to announce its second burning mechanism, and this might be the 1st burning of its kind in the crypto industry!
Introducing the 1st Social Engagement Burning in the crypto industry!
Most of the time, projects will give rewards (in their token) to the user who help to spread the news or interact with their social media (Like a twitter post, Retweet, or tag their friends).
Unfortunately, most of the users who receive rewards, will sell the rewarded tokens and not hold them.
Kommunitas has tried many ways to give rewards to its users but this does not really help in terms of the price of the KOM token.
Not directly giving them rewards, Kommunitas will now burn a several amount of token, based on its user engagement in the social media.
Special thanks to one of our Elite Group Members who came up with this idea. While we have been looking for a way to reduce our total and circulating supply, we want to make sure that it has a good impact for KOM and KOMmunity in general. — Robby Jeo.
Be it aLike, or even a Retweet, Kommunitas will count all the engagement, from twitter to medium and telegram, and then based on each category of engagement, Kommunitas will perform this Social Engagement Burning monthly, starting from October 2021.
The burning process will take place monthly, latest by the 5th of every month.
If you are a KOM token holder, now you can contribute to reducing the token supply, by interacting and sharing news about Kommunitas. The rules can be found in the google docs below, and Kommunitas will make a monthly report and share the link of the burning process with the KOMmunity.
While the list is exhaustive, the current rules are :
1. For every profile visit and tweet impression of Kommunitas’ Twitter, Kommunitas will burn 10 KOM. So, the more you share about Kommunitas on twitter and get your friends to check it out, the more KOM tokens will be burnt!
2. For every 1 mention of @kommunitas1 on twitter, 200 KOM will be burnt. This will be taken from the twitter statistics page monthly.
3. In the twitter statistics page, Kommunitas will check on their top follower of the month, and will burn 5 KOM multiplied by the number of followers that account has. For example: the top follower of the month of October 2021 is Twitter account ABC with 123,000 Followers. So, Kommunitas will burn 123,000 x 5 = 615,000 KOM!
4. From the Medium user stats page, Kommunitas will burn 1,000 KOM for every new follower that month.
5. Medium’s views, reads and fans will be taken into consideration too. Those numbers will be added together and Kommunitas will burn 200 KOM multiplied by those numbers.
6. If you help Kommunitas to expand its regional KOMmunity and establish a new regional KOMmunity (we have 17 regional communities at the time of writing) then 50,000 KOM will be burnt for every regional KOMmunity created. However, it will be subjected to approval by our internal team.
7. Based on the combot’s stats page, Kommunitas will burn 200 KOM for every new user in the main telegram group. We will also burnt 50 KOM for every message sent in our main telegram group. So, if you’re active on telegram, feel free to chat with and help others as this will help with the burning of KOM tokens, and make $KOM more scarce!
8. From the block explorer itself, Kommunitas will burn 1,000 KOM for every new holder (The number is 28,796 currently). So, if by the end of the month ofJanuary, there are 29,796 holders, Kommunitas will burn 1,000 x 1,000 KOM = 1,000,000 KOM!
9. If you are a creative person and wish to help Kommunitas, you can also do so by creating a Meme, Infographic, Gif, Short video, Video Review or article and blog. For every Meme and Infographic about Kommunitas, 5,000 KOM will be burnt. A GIF or a short video of 1–2 minutes will help KOM to be decreased by a multiple of 10,000 KOM. And 20,000 KOM will be burnt for every article or blog with minimum 500 words. We also burn another 100,000 KOM for every video on YT / Tik Tok made about Kommunitas. Please note that all of these are subject to quality checking. Low quality submission will not be taken into consideration. Form submission is needed for this part, and the link to the google form is :https://forms.gle/gLe7bDo6tQniSzecA
10. For those who want to help us expand our network of KOLs and Crypto Community, you can introduce Kommunitas to them, and make a telegram discussion group. We burn 100,000 KOM for every partnership initiated with a KOL, Crypto Community or VC