LUNALAND's INFLATION MANAGING MECHANISM

INTRODUCTION
Faced with the fear of another Great Depression, financial policy makers across the world are torn between the choice of simply borrowing the money they need or just printing it. Unfortunately, so many have gone for the latter, hence the reason for the rising level of inflation. It has already been estimated by Economists and financial experts that the coronavirus pandemic will cost the world's government's in the excess of over $11 Trillion. This is the reason why so many of them are exploring the not so desirable method of money printing popularly known as "money financed fiscal program". Aside the fact that currencies loose their inherent value, monetization has a lot of negative consequences. This is actually a bigger problem that seems to defy solution proferred by centralised financial system (CeFi).
Of recent times, cryptocurrencies have gain much prominence and attention. There is an increasing number of investors within the crypto industry and as a result, its aggregate value has skyrocketed to all time high. Bitcoin was the antidote of many to the economic crisis of 2008 and it also seems the trend is repeating itself as more people are becoming more interested in crypto. One of the crypto based solutions towards the issue of endless money printing by governments is "burning of coin"- this has become a trend within the industry. A notable blockchain project called Lunaland is offering endless protection from inflation ravaging the global economy.

TOKEN BURNING
The term token burning sounds dramatic especially when used with financial assets. Well, the truth is that it doesn't involve any physical burning of financial digital assets. The blockchain's protocol history and information are all locked up in blocks given that it is a decentralized system, hence, it cannot be altered in any way. Tokens are taken out of circulation in am algorithmix manner through sending signatures to a public address.
Token burning simply refers to the process whereby developers remove certain amount of tokens from circulation so as to slow down inflation rate as well as the total supply in circulation. The burning tokens are often sent to a specialised address without private keys so as to make them inaccessible. This procedure will help to reinforce the value of the token that remains in circulation.

Screenshot_20210706-110458_WPS Office.jpg

LUNALAND'S MODEL
Lunaland.io is coming up with a hyper deflationary token model which will see them burn the 1 Trillion total supply till a target of 400 Million LLN is attained. The burn rate is set at 99.96% of the initial total supply. Lunaland "burns" and holders "earn" given that after each weekly burn cycles, 10% is often redistributed to holders of $LLN.
So far, about 6 burning cycles have been carried out which has seen over 960 billion tokens burnt. This has helped not only to reduce inflation but also adds to the stability of the coin. The token burn proof information can easily be gotten on the website (Lunaland.io) or any of the social media handle ( https://twitter.com/IoLunaland). The hyper deflationary tokenomics behind the Lunaland token is designed to create a strong adoption within the industry as well as applications. The recent burn by LunaLand is one of the largest in recent times in the crypto space. The burning of LLN often involves the permanent removal of existing LLN tokens from circulation to a new address. The practice of burning is quite popular and the steps are straightforward. It is often a deliberate act in removing certain quantity from circulation.

Token burning are often done for several reasons. Most times it is often done to combat inflation. As the number of token in circulation decreases, there is an increased scarcity. A certain amount of tokens have been removed from the Lunaland ecosystem and burnt in order to ensure a hyper deflationary economy.
The burning of LLN is a procedure that has already been in place so as to maintain a deflationary LLN economy. The Lunaland team has been removing a set number of LLN tokens from circulation through burning cycles and also implementing unique features to the protocol. Lunaland's measure will ensure that the threat of depreciation due to the inflation of the supply is combated. The core idea of Lunaland is to create a token which will cure the deficiencies of the centralised financial system. Burning tokens will allow holders to increase their share of ownership of tokens and at the same time boost LLN price.

Screenshot_20210630-164350_WPS Office.jpg

WHY IS LUNALAND BURNING TOKENS?
The most common reason and objective of most token burns is deflationary purposes and this is not different from Lunaland's standpoint. The team is utilising this model to make sure that the value of $LLN stays stable and accrues in value thus making available extra incentives for traders, holders and investors. Another major reason revolves around supply and demand. If there are fewer tokens available, there will be scarcity which makes it more valuable.
Also, to incentivize more support for the Lunaland project. The team intends to increase the value of each token holder's current supply through limiting the quantity of token that are often distributed. In addition, another reason is the avoidance of spammed transactions as well as to improve security of the protocol.
CONCLUSION
Whereas it may appear quite impressive, token burning has proven to be an effective method of boosting the supply and value of a token when carried out transparently. We have seen a lot faked burning within the industry but Lunaland.io is changing that narrative by making public all its burn information. Just of recent, the presale was concluded and PancakeSwap listing will soon commence. You still have e a chance of bagging some LLN tokens because with time, the price will go high, always DYOR.
MORE ABOUT LUNALAND