As part of the Samecoin ecosystem, the utility token, Samecoin ($SAME), offers tons of benefits to the average person. It’s even beneficial for newcomers to the DeFi scene who want to benefit from staking but don’t really understand anything beyond the basics. That makes it easy for people just like you to enjoy staking bonuses, rewards, and reduced fees, especially when Samecoin is used in conjunction with the SamePay wallet app.
But because the Samecoin protocol will keep introducing new SAME coins to the market in the shape of rewards until the maximum supply of 100 million SAME is reached, the system needs a way to help ensure the value of the utility token continues to grow over time. This makes token burns crucially important.
Why token burns are important
Samecoin Protocol needs a deflationary system to help ensure the price growth of the utility token. These deflationary methods help reduce the number of Samecoin in circulation.
When used in conjunction with SamePay, Samecoin holders get increased benefits like staking rewards and reduced fees. This constant loop of rewards helps ensure the continued growth of Samecoin as an asset, but deflation is a crucial part of this. And that’s why regular token burns are so important, as they’re the main method used by the Samecoin Protocol to help ensure value growth.
How Samecoin token burns work
When Samecoin is used to pay for transaction fees on the SamePay app, half the fees go to a burn wallet while the other half go to the operators of SamePay. This means that at least half the SAME tokens are burnt at regular intervals. Even more, the other half held by SamePay could either be burnt, re-distributed, or HODLed
Users of SamePay already get access to industry-leading fees. But when used with Samecoin as well, they’ll get even further discounts and even lower fees.
Currently, the Samecoin burn schedule is once in the last month of every quarter, guaranteeing a regular burn of at least half the Samecoin taken in fees. As the distribution of Samecoin increases, this is planned to transition to monthly burns to ensure the supply is kept at the right amount.
Samecoin will also halve the rewards for staking and minting twice every year (every 6 months) to ensure it takes longer for Samecoin to reach maximum supply, again helping to guarantee future price growth.
So for every transaction made through the SamePay app, users will pay a very generously low fee of only 0.5% in Samecoin. Half of that amount will be burned automatically at these intervals, while the other half goes to SamePay and may also be burned.
These features of the SamePay platform and its integration with the Samecoin ecosystem are crucial aspects that set it apart from many other options in the crypto space, and they’re why more and more people just like you are choosing Samecoin for their digital payment needs.