We are burning BitBoost tokens!

Adjusting our token supply to the current status of our project.

When the BitBoost Tokens (BBT) were created, there were initially 100,000,000 BBT. No more BBT will ever be created, so this is the maximum supply.

How do BitBoost Tokens work?

BBT are required for sellers to create a listing on our blockchain-based marketplace. The price of each listing is calculated to be the equivalent of 1 USD at the time the listing is submitted. However, the value of BBT changes over time. For instance, on one day, 1 BBT could be worth 1 USD, On that day, a listing would require 1 BBT. On another day, BBT might be worth 10 USD. On that day, a listing would require only 0.10 or 1/10 of a BBT. BBT have 4 decimal places, so the listing requirement can be as low as 0.0001 BBT.

Extra BBT

Our initial sale of BitBoost tokens did not meet our expectations, and there are now a very large number of BBT being held by BitBoost (approximately 88 million). As outlined in our White Paper, some of these are tokens have yet to be distributed and others are scheduled for distribution. These distributions will still occur. The remainder, approximately 61 million, are tokens that we had hoped to sell last year during our pre-sale and main sale. This 61 million “extra” BBT are the problem.

The Solution

We believe that this large number of 61 million unsold tokens creates uncertainty about the price of BBT, and that is not good for our community. To solve the problem, we plan to conduct a burn.

A burn is process that irrevocably destroys some tokens, permanently lowering the maximum supply. Our plan is to keep the maximum supply of BBT set to a number that is easy to use in calculations, so we will burn 50,000,000 BitBoost tokens, cutting the maximum supply exactly in half.

A burn of BBT will not affect how BBT functions in any way. The price of creating a listing on our blockchain-based marketplace will remain the equivalent of 1 USD, as described above.

We are researching our options for conducting the burn, and once we have settled on the best technical approach, we will move forward, and there will be an announcement. Our goal is to accomplish this burn with no repercussions for current token holders.

After the burn, the remaining tokens (approximately 11 million), which need to be locked until November of 2018, will be locked through a smart contract that we have developed. Our plan was to use an escrow partner for this but we have been unable to find a partner that meets our needs. A better solution was to build and test our own time-lock contract, which we have done. The source code can be found here:

https://gist.github.com/blackyblack/cd33ba17bfc42023ffe216314974a014

This is the code we will use on the livenet. Before we create the contract, we welcome any review from the community.