Auto Black Hole
The Luzion Protocol utilizes an Auto Black Hole mechanism in which 2% of all traded tokens are burnt. The more tokens that are traded, the larger the black hole grows through self-fulfilling Auto-Compounding, reducing the circulating supply and stabilizing the value of the Luzion Protocol. The deflationary nature of this process also increases the individual value of each token.
- 1.A percentage of all traded Luzion Protocol tokens (2%) are burnt through the Auto Black Hole mechanism.
- 2.The more tokens that are traded, the larger the black hole grows through self-fulfilling Auto-Compounding.
- 3.The growth of the black hole reduces the circulating supply of Luzion Protocol tokens, which helps to stabilize the value of the tokens.
- 4.The deflationary nature of the Auto Black Hole mechanism increases the individual value of each Luzion Protocol token.
- 5.The Black Hole also compounds the tokens within its address, providing an additional benefit.
- 6.Some competitors do not automatically send tokens to the burn smart contract, instead storing them in their own wallet, which presents a security risk.
In summary, the Auto Black Hole mechanism helps to stabilize the value of the Luzion Protocol by reducing the circulating supply of tokens and increasing their individual value through a deflationary process. It also compounds the tokens within its address, providing an additional benefit. In contrast, some competitors do not follow this approach, which can present a security risk.
Users can check the amount of burnt LZN tokens in the binance smart chain explorer, which provides transparency and allows users to verify the burnt tokens for themselves.