Ok, the word is out, there is a deflationary token in town.
In the not-too-distant past, a new token was created, Bomb Token. It was conceived with one idea in mind:
What are the implications of a purely deflationary asset? Is it feasible? Will it survive? Will it "get rekt"?
Born out of the desire to not get rekt again, this token was created to help minimize Token Velocity, a term that will be covered in vast detail throughout the future of this blog. I will highlight Token Velocity in this post and point out how deflation plays a role.
Token Velocity is the speed at which a token moves and changes hands (through trading), which is mainly driven by short term speculation. Long story short, people buying the dip and selling the rip, every single possible chance they get. When this happens enough, people are buying and selling off of something as small as a sub-1% price change. There is no incentive to HODL longterm, because you could just spend your time worrying about short-term gains.
BOMB Token has a built-in deflation mechanism powered by an immutable smart-contract that incentivizes NOTHING other than LONG-TERM HODLING. Of course, you are welcome to buy and sell BOMB just as quickly as any other token, however, the real gold behind bomb is that every day hundreds if not thousands are burned FOREVER. There were only 1,000,000 tokens to ever exist, and so far, at the time of writing this, only 972,663 still exist. That means that over 2.5% of the total supply has been burned into oblivion. According to a rough calculation made by the "Bomblytics" bot based on current burn-rates in our telegram chats, the last BOMB will be burned in 2021, only 2 years from now.
Now, keep in mind, the token is worth a little under $8 right now. It is reasonable to assume that, as the token grows in value considerably (which is not necessarily guaranteed but highly probable), the burn rate will slow down. Why? Because every single time you transfer BOMB, at least 1 BOMB is burned. This means that there will NEVER be more than 1,000,000 transfers, and considering some people are transferring huge amounts around, and 1% of the total transaction amount gets burned, there will be far less than 1,000,000 transfers to ever occur.
So, in short, this is one of the biggest social experiments to ever exist in crypto, or the financial world in general.
Who will be the last HODLers of BOMB? How many tokens will be left in the end? Once the price goes up high enough, will anybody want to burn some of their precious BOMB in order to move to an exchange to sell? All of these questions are up in the air, and that is what makes this project so exciting. You can finally hold a stake in a crypto network that ONLY goes up as far as your PERCENT STAKE of the network. Everytime anybody transfers BOMB, the BOMB you hold take up a larger percent of the overall marketcap.
Very exciting stuff indeed, once you realize the scope of it. You can read more here, in our #introduceyourself post and also here, on our website! We also have a great FAQ post on Reddit, here.
Disclaimer: A few BOMB were burned while this post was being written, so the above math is now different! Things are moving fast, about as fast as an explosion!