Yes, you heard it right, WazirX successfully completes the 2nd WRX Burn event on 13th October 2020. This burn event is for the recently completed quarter of July – September 2020.
In the 2nd Quarterly WRX Burn event a total of 3,333,333 WRX equivalent to ₹2,47,00,000 INR (~ $327,833 USD) were burned. This time WRX burn event completed in 3 parts over a period of 5 days.
Part 1 on 9th October, 2020: 833,333 WRX burned.
Part 2 on 11th October, 2020: 1,000,000 WRX burned.
Part 3 on 13th October, 2020: 1,500,000 WRX burned.
Also, this time WRX burned is 300% more than that burned in the previous quarter. 1st successful WRX Burn event was completed on 5th July 2020, in which a total of 833,333 WRX were burned.
At that time the value of 833,333 WRX was equivalent to ₹92.2 Lakhs INR ($120,000 USD). After the 1st burn event, the total supply of WRX token was 999,166,667 WRX but after 2nd burn event, it’s 995,833,334 WRX.
In order to have a transparent system, all the burn event is recorded as a transaction on the blockchain. You can view the TXID for the 2nd WRX Burn here, here, here and here.
There is also one good news for all the WazirX users, that it is going to host Highest Trader Kaun Marathon for WRX/USDT on Monday & Tuesday and giving away ₹5,00,000 worth WRX.
Now let us know how token burn will help the community? Let’s understand this here:-
WRX Burn Schedule and Amount of Token to be Burned
Basically, Coin burn is a process of permanently removing the coins from circulation which will ultimately reduce the total supply.
As per the WazirX whitepaper, WRX Burn will happen every quarter (3-months period) based on the trading volume on its crypto-to-crypto platform. As there was a total supply of 1 Billion WRX token out of which 10% of WRX will be completely destroyed.
This 10% i.e. 100M WRX tokens will be burned in every quarterly burn event until it’s completely destroyed. As already mentioned, based on the total trading volume on WazirX in the recently completed quarter a total of 3,333,333 WRX were burned.
Out of the total 1 Billion WRX tokens here is its allocation:-
WRX Token (%)
WRX Tokens
Where
10%
100,000,000
IEO Public Sale
5%
50,000,000
Private Sale
30%
300,000,000
Foundation
20%
200,000,000
Product & Marketing
20%
200,000,000
Partnership & Ecosystem
11.10%
111,000,000
WRX Airdrop
3.9%
39,000,000
WRX Mining
Now there might be one question in your mind, how token burn helps the WRX community? So let’s understand this.
How WRX Tokens Burn Helps the Community?
Basically, tokens are burned in order to reduce the existing circulating supply of a token. So if we reduce the token supply periodically the value of the token keeps increasing. By this way, the early holders of WRX will benefit the most from it.
As WazirX burns WRX token based on the trading volume for that particular quarter on its crypto exchange. So if the trading volume on WazirX increases the WRX burned every quarter will also increase.
About WazirX and WRX Token
WazirX is one of the leading cryptocurrency exchange in India which was launched in March 2018. At the time of launch, WazirX distributed its native token WRX to the early users so that they can be a part of their success.
The early users of WazirX got WRX token in the form of sign up bonus, referral, trade mining, contests, etc. which formed 11.10% of the total WRX supply. WazirX token WRX is based on Binance Blockchain.
Users can also mine, unlock, and earn WRX by doing P2P trades on the crypto exchange. Currently, WRX can be traded on various crypto exchanges like Binance, WazirX, CoinDCX, Poloniex etc.
Use cases of WRX tokens.
Trading Fee Discount:- Holders of WRX tokens will get trading fee discount for 4 years in the following manner:-
Year 1: 50% trading fee discount
Year 2: 25% trading fee discount
Year 3: 12.5% trading fee discount
Year 4: 6.25% trading fee discount
Token Airdrop:- Whenever any different company lists its own token on WazirX and agrees to provide tokens to WazirX users in return for a listing. In such cases, the airdrops will be distributed based on the amount of WRX you hold.
Listing Fee:- If you have WRX tokens then you can even pay it as a listing fee for listing your own tokens on WazirX.
Margin Fee:- You can even pay WRX as fees for the margin trading on WazirX or interest on the borrowed amount.
Voting Power:- The WRX token holders will also get the power to vote for listings or future feature releases.
FYI I will tell you that WazirX is the first crypto exchange in the world which launched auto-matching P2P engine in India. Traditionally the P2P systems were a type of classified listings from where you have to complete the deal. But in the auto-matching P2P engine the buyer places USDT order and the deal automatically gets matched with a seller.
After 20 months of launch, WazirX was acquired by Binance, one of the biggest crypto exchange in the world in terms of the trading volume. Binance was founded by Changpeng Zhao and Yi He.