Huobi, the renowned cryptocurrency exchange, has recently announced its burning of a staggering 1,950,555 Huobi Tokens (HT) during the second quarter of 2023. This development comes as part of Huobi’s commitment to enhancing the value and sustainability of HT.
By burning 20% of its revenue, which amounted to approximately $26.91 million in Q2, Huobi aims to reduce the circulating supply of HT and strengthen its market position.
As of July 15, 2023, the exchange has burned an impressive 298,940,224 HT. The circulating deflation rate for the quarter was calculated at 0.9066%, demonstrating the impact of the burning mechanism. The current circulating supply of HT stands at 159,153,756 HT, derived from the existing supply of 201,050,000 HT.
In a significant announcement, the exchange has revealed its plans to upgrade the HT burning mechanism. In response to community feedback and to align with industry norms, it will transition from monthly to quarterly burning.
Huobi’s Commitment To Transparency & Improvement
This change increases transparency and allows for a more comprehensive disclosure of HT burn data. Going forward, the burn figures for each quarter will be released on the 15th of the first month of the subsequent quarter.
The HT burning mechanism allocates 20% of the exchange’s revenue toward the burning process. Its revenue comprises trading fees from various platforms, interest on loans, withdrawal fees, and revenue from different products and services. By transitioning to quarterly burns, Huobi aims to improve the transparency and effectiveness of the process.
Huobi has been making waves beyond its burning mechanism as well. The exchange has become the first member of the Hong Kong Virtual Assets Consortium (HKVAC), an organization focused on bolstering security risk management and establishing Hong Kong as a leading hub for virtual assets and digital finance.
Additionally, the exchange has partnered with Gala Games, intending to collaborate on Web3 development and integrate with the Gala layer-1 blockchain.
Nevertheless, as the exchange continues to innovate and adapt, it acknowledges the vital role played by its community. By actively engaging with users and embracing industry best practices, Huobi remains committed to building a stronger and more prosperous future for HT.
With the unwavering support and contributions of its community members, Huobi aims to solidify its position as a top-tier cryptocurrency exchange.