Synapse burn 60% of the tokens and flip the table in favor of its Community

As you probably already know, We, as members of the Synapse Network Community, are about to witness one of the biggest token burns in cryptocurrency history. Synapse will burn 60% of its total token supply very soon.

This level of burn is quite uncommon in the digital world, and it is very similar to the Crypto.com burning event which was called “The largest in history” and eventually led to the greatest price increase ever seen in the CRO token history.

What is coin burning?

Coin burning is a process where cryptocurrency developers remove a specific portion of their own coins from circulation to influence the token price to prevent inflation or deflation. It is a common industry practice to better incentivise long-term holding among users, by managing the price through a supply restriction.

Why is it done?

In general, Coin burning is done either because the project has got back a large portion of their tokens from the various services offered to their users, or the company decided to artificially increase the token price via supply reduction to ensure long term growth and better rewards for long term holders, stakers and general community members that owns the company currency.

So, what impact does it have on investors?

In general, it is a bullish event for the investors as it reduces the total number of tokens available for circulation. It is important for the investors to know that this event is happening, when it is supposed to happen and what is the total percentage of the burn-in regard to the total supply, so that they are prepared for the price variation that is coming their way. We can compare the token burn process to the reduction of equity in a never issued corporation or one that was bought back from the investors.

How is a coin being burned?

The portion of the coins that are being burnt can be easily verified directly on-blockchain. These coins are sent to a wallet to which no one has access. It can be done in several ways, most commonly by sending the coins to a so-called eater address. Its current balance is publicly visible on the blockchain, but access to the contents is unavailable to anyone. In most cases, it is the

0x0000000000000000000000000000000000000000 address, or the

0x000000000000000000000000000000000000dEaD address.

The burning process can also be done inside the token itself but only if the framework utilized supports using the burn() function, which is strictly done only to decrease the token total supply.

What can you expect?

What can we expect from Synapse’s token burning? Nothing can be guaranteed as the cryptocurrency market is highly volatile and unpredictable, but it is worth looking at similar events that have previously happened in the market.

In this case, let’s analyse what happened to the $CRO token after their burning event.

The $CRO token performed its burn on 22nd Feb 2021. The price at the moment of the burn was about 0.14$ per token. The burning event itself didn’t have an immediate impact on the price, but soon everything started to fall in place and just 9 months after the burn the price went to 0.9$ which was a 650% increase from the price before the burn process.

Will the same happen to the Synapse Network token? One cannot be sure, but you need to remember that currently, the $SNP token has a market capitalization of 8.16M. The market capitalization of the $CRO during the burn was at about 3400M, which is 416x times the capitalization of the $SNP token.

In general the lower the market capitalization the easier it is to increase the price of the token and to reach new ATH levels due to higher percentages influencing the token itself with each big movement from the community.

Which tokens will we burn?

• All Research Tokens 125,000,000 SNP
• All Reserve Tokens 65,000,000 SNP
• Most Team Tokens 40,000,000 SNP
• Half Advisory Tokens 15,000,000 SNP
• Most Exchanges Tokens 20,000,000 SNP
• Most Marketing Tokens 35,000,000 SNP

It is important to realize that this is not just a scaling down of tokenomics, but a significant change in the structure itself in favour of investors, so that the percentage of owned tokens and tokens on the market becomes a much higher percentage of the token’s total, while lowering the percentage of the tokens owned by institutions, projects and partners of the Network.

What does this mean for the investor?

This manoeuvre adds a whole range of benefits aimed to guarantee long-term project success and increase community safety, by creating a more solid base for the user to work with.

1) More than half of the tokens have already been sold and are under the control of investors. Most projects only sell 15–25% of the tokens, with the majority remaining under project control. This is not the case with Synapse, as we believe that our investor’s agency is more important than short term benefits for the company itself.

2) The share of staking rewards in total supply has increased from 6% to 15% of the total supply.

3) The share of liquidity supply rewards has increased from 6% to 15% of the total supply.

4) Synapse Network as an organization controls only 9% of the totals supply, with 6.5% allocated to marketing and 2.5% allocated to the various exchanges we are on (for example, to provide liquidity on our Dexes or to be ready for listing on major CEXes)

About Synapse Network

Synapse Network is developing a cross-chain investment and start-up acceleration ecosystem based on blockchain technology to give everybody an equal chance to contribute to great upcoming projects and to do so early on. We are bridging the gap between the traditional & crypto market. The idea of the Synapse Network technology goes beyond the standard offer of launchpads available on the market, becoming a true technological brand providing tech solutions.

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