We are delighted to announce that we are launching the $YIELD Burn Calculator.
Token burning is the process by which digital currency miners and developers can remove tokens or coins from circulation, thereby slowing down inflation rates or reducing the total circulating supply of coins. Token burning increases token scarcity and places upwards price pressure on the token. We wanted to show you how it will work for our $YIELD token.
We want to show how $YIELD token purchasing and burning may positively affect its price.
This calculator is based on YieldShield — the first product built on Yield Protocol.
Upcoming and future products built on Yield Protocol will apply the same logic and approach.
What parameters do we take into account?
YieldShield takes the following parameters into account with the $YIELD Burn Calculator.
Total Value Locked (TVL) — the amount of assets that are being staked in the YieldShield platform.
Current Price — stands for the price of the token on the market. When first arriving on the page users can see the current value of $YIELD token, but by adjusting the settings users can see how any changes may affect its future price.
Market Cap in perspective — this is the future Market Cap of $YIELD token. Market Cap is the total value of all coins that have been purchased.
Average APY (Annual Percentage Yield) — is the projected rate of annual return after taking compounding interest into account. YieldShield is taking the Average APY on the platform into account so we can predict how many rewards will be generated and claimed in $YIELD tokens.
YieldShield users will be able to claim their rewards in $YIELD tokens, and 50% of the fees charged on the platform will be converted into $YIELD and burned.
YieldShield users have 3 options for claiming their rewards:
- In native tokens. This will lead to a 10% fee being charged, with half of the fee converted to $YIELD and burned.
- In $YIELD tokens. A 5% fee will be charged to the user, with half converted to $YIELD tokens and burned
- In LP tokens — 0% fee will be charged. Rewards will be invested in $YIELD/ETH pool and LP tokens sent to the user’s account.
Based on how users claim rewards, the number of $YIELD tokens being burned and purchased will vary, leading to the projected token price change. Users can see the number of tokens being purchased and burned, the projected price of the token on the right side of the calculator, as well as how the $YIELD price may change.
There are a number of tabs which allow users to analyze the number of tokens being burned on a daily, weekly, monthly or yearly basis.
We hope this tool will offer better insight into the possible price of $YIELD tokens in the future, the kind of returns you might expect, and the many great reasons to hold $YIELD token.