/biz/ - Business & Finance

The entire Request ecosystem needs the token to funtion, they are building it that way.

What is the purpose of burning tokens? Isn't that just wasting them?

1) Value added for investors - token burning decreases supply, increasing scarcity. 2) Burned to actually use the network - very small percentage of the transaction total value burned in REQ. This allows the network to be used and gives incentive to others to hold the token and manage gateways. Token burning is similar to share repurchasing in the traditional stock market. By reducing the supply of tokens, demand may increase, providing value to holders by increasing the price per token.


What is the token used for?

Fees

The REQ ERC20 token is required to participate in the network. When using the network participants will pay a network fee in REQ, which will be burned. This fee will be 0.05-0.5% of the transaction value, with this percentage decreasing as network volume increases. The user should be aware they will also pay the network fees for any blockchain they make use of as well as any additional services, for example if a Request for BTC is fulfilled using ETH, there would be a fee for transfering the ETH, a Kyber fee for converting to BTC, and a fee for the BTC transaction.

Governance

One of the major challenges to a decentralised system is decision making. If the Request Network is to survive and flourish, there must be a system for governance. Here the intention is to use the REQ token for voting rights, with plans to create the necessary tools for administration and potentially a chat system.

Technical independence

It is possible that in the process of scaling Request a solution such as Plasma Chains will be used. In this solution a specific token is used to secure the network via PoS (Proof of Stake). Using a token is the most flexible and independent way to conceptualize a system that will need consensus and security to evolve in the long term.

>>7865710
Pic related is first one that popped into my head. You do good work anon, saved.