Cash Tech is introducing a token burn program that will make CATE tokens significantly more scarce by radically reducing the total supply. The burn program will destroy 10% of the weekly USD cumulative trading volume in CATE tokens for a total of two weeks.
For instance, roughly $6 million worth of CATE tokens were traded over the past 24 hours. If the remainder of the week records similar trading volumes, roughly $42 million will be traded over the course of the week.
In this case, 10% of the $42 million in trading volume, $4.2 million worth of CATE tokens, would be erased from the supply irreversibly. With CATE currently trading at $0.737, this represents roughly 5.7 million CATE tokens being removed from the supply. The maximum burn per week is capped at 10.0 million CATE tokens.
The first burn period will start on Sunday the 4th of April with the burn for the period taking place on the 11th of April. 10% of the total USD trading volume from the 4th until the 10th of April will be burned on the 11th of April.
The burn program will run for a total of two weeks. The second burn period will start on the 11th of April and run until the 17th with the actual burn taking place on the 18th. The introduction of this burn program represents a major update to the Cash Tech token economics.
Current CATE holders will largely benefit from the burn program as they will hold a greater percentage share of the overall CATE supply. Those that purchase CATE during or after the burns will be purchasing from a more constricted supply. The higher the volume goes over the next two weeks the more valuable each CATE token becomes.