The First Round of non-circulated $C2X(CTX) token burn was finalized on 08/18/2022. In this article, we will provide you with some context on what a token burn is, what happened during the C2X(CTX) token burn and minting of XPLA and how many rounds of burning of $C2X(CTX) there’s going to be.
Why burn tokens?
The best real-world comparison to a token burn would be removing assets from circulation. Reducing the number of tokens (or assets) in circulation is normally done with the intention to increase the value. The reason for C2X(CTX), however, to burn tokens is coming from a practical perspective. We wanted to fully migrate our token from Terraclassic to XPLA which meant that we had to completely shut down the Terraclassic side. All burnt C2X(CTX) will be minted as XPLA in the same number when the genesis block of the XPLA mainnet is created on 08/19/2022.
The First Round of Burning
Burning of non-circulated $C2X(CTX) will be conducted through multiple rounds and this is because the migration will not be immediate and there will be a transition period where both $C2X(CTX) and $XPLA will run in parallel. The rest of the not-yet-burnt-non-circulated $C2X(CTX) will remain until the migration process is complete to ensure the smooth function of the C2X ecosystem.
We will let you know when we’re ready to perform the next round of burning in a separate announcement!