LooksRare (LOOKS), one of the popular altcoin projects, announced its coin burn plan the other day. With this development, the value of crypto money began to rise. Here are the details…
Altcoin LOOKS, starting to rise
LooksRare, a leading NFT marketplace, has taken significant steps to address inflationary concerns surrounding its native cryptocurrency LOOKS. The platform announced on Twitter on November 23 that it will implement various mechanisms to reduce the supply of LOOKS, starting with the launch of a new mini-game called INFILTRATION. In its detailed statement, LooksRare explained its strategy to introduce a deflationary structure for LOOKS. This groundbreaking move involves burning 25% of all LOOKS used in the INFILTRATION game. Additionally, LooksRare announced that 50% of the revenue from the game will be allocated to purchasing LOOKS tokens directly from the market.
THE BURN HAS BEGUN!
Say goodbye to the LOOKS supply. pic.twitter.com/eHFGXDyPBb
— LooksRare (@LooksRare) November 24, 2023
The announcement of these measures created excitement among investors and led to a significant increase in the value of LOOKS. Following the team’s announcement, LOOKS experienced a significant increase of 40 percent, rising from $0.0839 to $0.132. As of the last update, LOOKS is currently trading at $0.121.
LOOKS’ orbit is being monitored
Building on this momentum, LooksRare officially confirmed that the destruction of LOOKS tokens had begun on November 24. The platform had previously updated its token economic model and set 50% of future fees to buy back LOOKS tokens from the market. Additionally, 10% of these fees will be allocated as protocol rewards, while the remaining 40% will contribute to the protocol treasury. The combination of altcoin burning and strategic buyback initiatives demonstrates the platform’s proactive approach to increasing the value and sustainability of LOOKS in the cryptocurrency market. Investors and enthusiasts will undoubtedly closely monitor the impact of these measures on LOOKS’ long-term trajectory.
Why is coin burning important?
Coin burning, a practice widely used by cryptocurrency projects, is of great importance in managing token supply and encouraging scarcity. This process involves the intentional and permanent removal of a portion of a cryptocurrency’s circulating supply from the market. This reduction in supply is designed to potentially increase the value of the remaining tokens, creating a deflationary effect.
Altcoin burning aims to address concerns about inflation and excessive token availability, thereby increasing the perceived scarcity and value proposition of cryptocurrency. This can also be a strategic move to demonstrate projects’ commitment to long-term sustainability, instill confidence in investors and align with certain economic models. Additionally, intentional reduction of token supply through burning can contribute to price stability.
