Waves Enterprises has taken the crypto world in a blow with its recent announcement about its native digital asset—the WEST tokens. The firm is gearing up to burn 60% of all WEST tokens. The process will decrease the total supply value of WEST from the initial 1 billion mark to a mere 400 million mark.
This strategic decision is likely to be a critical measure by the platform, which will bring down the supply substantially without introducing any change in the protocol. Interestingly, the company recently changed the name of its native digital token to Waves Enterprise System Token or WEST. The token will be available with the new ticker name on all exchange platforms where it is listed.
As per the reports, the platform has already collected the necessary amount of funds that are required for the development of the project and so it does not need any additional funding. Waves Enterprises will burn 600 million tokens while the remaining 400 tokens shall be spread in the following manner:
- 200 million WEST tokens: Will be purchased by early investors
- 40 million WEST tokens: Will be airdropped to Waves/WCT holders and in the market
- 160 million WEST tokens: Will be held by Waves Enterprise
About the Burn Protocol
Burning of digital tokens is a familiar, quite common, and straightforward mechanism in the crypto world, which indicates the permanent removal of a certain amount of coins from the total amount of digital assets available using cryptographic measures. Waves Platform will implement the burn process via a special “burn transaction.” For the holdings that have been transferred to the WEST Enterprise network through the WEST gateway, a smart contract will be curated along with a script that will restrain outgoing trades. Six hundred million tokens will be moved to this contract rendering them frozen forever. WEST tokens will be locked at 12:00 GMT on November 12, 2019, on the Waves Enterprise network.