๐The Burning Strategy
Reducing the circulation of NRT over time.
NEO DAO repurchases NEO Credit (NRT) tokens from the market and permanently destroys them.
The process of destroying NRT tokens is transparent and public, and information about the number of tokens destroyed and the transaction value is recorded on the NEO DAO blockchain.
In practice, NEO DAO uses a portion of its quarterly profits (20%) to purchase NRT tokens from the market and then destroy them.
The goal of the NRT token destruction process is to reduce the supply of NRT tokens in circulation, increasing the rarity and value of the remaining NRT tokens.
HOW IT WORKS
The rate of destruction of NEO Credit (NRT) tokens in each NEO Burn event is 20% of NEO DAO's quarterly profits. The actual rate of tokens destroyed may vary from time to time, as it depends on NEO DAO's profits in the previous quarter. For example, if NEO DAO recorded a profit of $1 million in the previous quarter, it would destroy $200,000 worth of NRT (purchased on the market), which would represent the percentage of tokens destroyed for that quarter.
The first NEO Burn event is expected to begin on June 1, 2023, in which 20% of NEO DAO's previous quarter's profits will be destroyed, based on the established destruction rate.
The figures and information provided are approximate and for informational purposes only. They do not constitute income guarantee. Please note that all investments carry a risk, and past performance is not indicative of future results. Investing in NEO DAO or any other investment opportunity involves risk, and potential investors should conduct their own research and seek advice from a financial advisor before making any investment decisions.
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