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Dear users,
We would like to summarize several key aspects regarding the potential effects following the implementation of WEXO token burning mechanisms.
First, here are the key facts:
Burning 14.5% of tokens significantly reduces the circulating supply.
With stable or increasing demand, this creates deflationary pressure = driving the price upwards.
1. Supply & Demand: Less Means More
Basic Economics: If demand remains stable or grows while supply decreases, the price naturally tends to rise.
Monthly burning of WEXO tokens systematically reduces supply.
This effect isn't a one-time occurrence but is cumulative over the long term.
The more tokens disappear, the more valuable the remaining tokens in circulation become.
2. Psychological Effect: FOMO
A transparent burning program creates a sense of urgency in the community: "Tokens are disappearing, the opportunity is shrinking."
Such a clear strategy boosts investor confidence and attracts new investors who don't want to miss potential upside.
3. Benchmark with other cryptocurrencies
Consider cases such as:
BNB (Binance Coin): After launching its burning program, the price of BNB increased by hundreds of percent (naturally, in combination with other factors).
Shiba Inu: Burning positively impacted both sentiment and token price.
Note: Burning alone does not guarantee a price increase, but it is a powerful fundamental tool to support price growth, especially if token use and community involvement also grow.
4. What to expect with WEXO?
✅ Step 1: With stable demand, the token price naturally begins to rise.
✅ Step 2: The community will have increased confidence in the token fundamentals.
✅ Step 3: Increasing demand + decreasing supply = potential exponential effect.
➡️ Important: The effects will not be immediately visible in the first weeks, but they will accumulate gradually through monthly token burning.