Burning 2.65% of Total IOTX Supply from IoTeX Foundation Funds

:warning: The IoTeX Foundation has made the decision to burn 2.65% of total IOTX supply from Foundation Funds. As of June 2020, the maximum total supply of IOTX has been reduced from 10 billion IOTX to 9,734,304,444 IOTX. :warning:


Background Context

Prior to Mainnet GA, staking/voting was performed on both Ethereum via IOTX-E (ERC20) and IoTeX via IOTX (native) through three legacy staking/voting smart contracts:

  • ERC20 Staking v1 (on Ethereum Mainnet)
  • Native Staking v1 (on IoTeX Mainnet)
  • Binance Staking Campaign (on IoTeX Mainnet)

As part of Mainnet GA, we launched a brand new staking mechanism called Native Staking v2 (nsv2) and all staking/voting data from the legacy contracts were snapshotted and merged into nsv2. The three legacy contracts were then immediately locked, meaning all actions (e.g., unstake, withdraw) are disabled.


Burning 2.65% of the Total IOTX Supply from IoTeX Foundation Funds

The IoTeX Foundation made the decision to burn 2.65% of the total supply from Foundation Funds in order to 1) ensure a smooth Mainnet GA migration for IoTeX stakeholders and 2) accelerate the activation of a fully native IoTeX Network. Rather than ask all stakeholders to unstake their IOTX from the old staking/voting contracts, the IoTeX Foundation injected the corresponding amount of IOTX into nsv2.

Note: users’ tokens were NOT burned and this does NOT affect users’ stake/votes in any way – all users’ stake/votes were snapshotted and merged into nsv2.

All native IOTX in the legacy Native Staking v1 & Binance Staking Campaign smart contracts have been taken out of circulation forever (i.e., burned). The burned tokens come directly from IoTeX Foundation funds – users’ stake/votes and tokens are NOT affected.


What’s Next?

We will communicate these new changes to token metrics website (e.g., CoinMarketCap, CoinGecko) to reflect the updated maximum total IOTX supply.

For any questions, please discuss in this forum thread or contact an Admin on Telegram.

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