Jamie McNeill
The team at Lucky Block have announced that they are to be introducing a token burn on the 30th September in order to make the token more deflationary, which ought to increase the price going forward.
Lucky Block burn – LBLOCK is becoming deflationary
Scott Ryder, the CEO of Lucky Block, announced that from the 30th September a burn system will be implemented, whereby 1% of the Lucky Block supply will be burned each month. According to message posted in the Telegram group, this decision was taken not only in order to combat FUD, but also to ensure that the asset becomes scarcer.
The Luna Classic community recently voted to also implement a 1.2% burn on each transaction in order to make the supply as deflationary as possible. This decision was extremely popular within the Luna Class community and the token price has performed extremely well since the decision was made, gaining hundreds of millions of dollars in market cap.
However, the Luna Classic burn of 1.2% per transaction won’t be nearly as deflationary as 1% of the supply being burned every month. LBLOCK holders will be extremely pleased with the decision, as their share of the network increases with each burn.
Why is being deflationary good for price?
When an asset is more deflationary it is usually a good thing for the price, since it means that the asset is scarcer.
Plan B’s stock to flow model has been one of the most revered and famous models in Bitcoin’s history. Not only was it extremely accurate for a long time, but it also very clearly demonstrated the relationship between scarcity and price.
When a project has a lower inflation rate, it means that the potential selling pressure is lower from new supply coming into the market.
When a coin or token becomes deflationary, it means that there will always be less supply than before – as long as interest in the project increases (or even remains flat) the price ought to appreciate as the supply is consistently falling.
How high could the LBLOCK price go?
The price of LBLOCK is currently down a long way from its all-time highs, as with most assets at this stage of the market cycle.
However, unlike many projects that have failed and died, Lucky Block continues to innovate and expand their community.
This Saturday, Lucky Block was to be showcased to the world, as the company’s newest brand ambassador Savannah Marshall was schedule to fight Claressa Shields.
However, given the news of the Queen’s death, it is now uncertain whether or not the fight will actually take place as the country enters a period of mourning.
Currently, the LBLOCK market cap sits at $48m, which is a significant retracement from all time highs – if LBLOCK were to reclaim these highs, which it achieved before cementing itself as a recognised brand in the boxing space, the price would need to appreciate over 20x.
Relevant news:
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- Lucky Block Boxer Savannah Marshall Fights Claressa Shields This Saturday
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This article was written for Business 2 Community by Jamie McNeill.
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