HUOBI USERS VOTE ON FUTURE OF HUOBI TOKEN — airdrops vs token burn

Huobi Token Buyback Program

Case for airdropping

This has been the de-facto model that Huobi has been taking care of the buyback tokens. A snapshot of user balance is taken at specific predetermined times and used to calculate the coins to be received. Airdrops serve as proof-of-stake model or a dividend model with coin owners able to earn even more coins by simply earning HT airdrops commensurate to their holdings. Overall the amount of HT coins remains constant.

Case for Token Burn

Burning tokens refers to deliberately removing tokens from circulation by making them inaccessible to anyone. This is done by sending them to certain addresses referred to as verifiably unspendable address — are invalid (unavailable private keys). Anyone can be able to track the burn process using the blockchain explorer and transaction ID.

In conclusion

Exchange tokens have utility, one of the few cryptocurrencies that can boast of this- they fuel the business model of cryptocurrency exchanges. However, as witnessed this year, the larger movements in the cryptosphere can have significant impact on both decent and poor projects alike. This is the occupation hazard of exchanges in the environment that they operate in. As such any edge that can be captured to decouple from industry constraints should be welcome. I believe a token burn contributes greatly to this logic. Exchange tokens can be resorted to as safe hedges in the turbulence, with investors expecting at the very least little devaluation of their investment.

Open an account on Huobi here

Full disclosure: This article is not intended as investment advice. It is just my personal opinion on Huobi. You should always do your own research. Huobi Global rewards me for writing this article and supports me for ventilating my own personal opinion.

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