What’s happenning exactly ?
I forgot to tell you,
If you still don’t care to cherish, the HOGT you’re holding is being repurchased and destroyed !
It is not an exaggeration to say that HOGT.COM will start the automatic repurchase and destruction mechanism on 19:00 24th May, 2021. If you don’t know how to cherish and sell your HOGT, and happen to catch up with the platform buyback, then your HOGT will be permanently destroyed. From then on, you will never buy back the HOGT you sold.
The total volume of HOGT is constant. the production will be less and less as time flows. When the repurchase destruction mechanism is on track, a large number of HOGT will be repurchased and destroyed every day. In other words, HIGT will become increasingly scarce.
What’s Repurchase-destruction Mechanism?
Repurchase-destruction Mechanism means that the platform will automatically buy back HOGT and destroy it with the profit / income generated every day. When the larger the capital pool deposited by the platform is, the higher the income is, and the larger the repurchase fund is, the more HOGT will be destroyed. When a certain amount of HOGT is destroyed, the price of HOGT will rise. The less the amount of the same fund is destroyed, the greater the value of hogt will become.
There’s a fact that the benefits of 70% from generated pool will give to miners, the rest of 30% will used to repurchased and destroyed which means the total volume of HOGT on the market is constantly decreasing and that leads to deflation effect, so as to stimulate the steady appreciation of the currency price of HOGT, so that every user who is holding HOGT can share the platform dividend.
Well, let’s say that If the TVL of HOGT.COM reaches 500 million USDT and the rate of return is 1 ‰, the daily income is 500, 000 USDT, of which 30% will be used for repurchase and destruction, that is, 150, 000 USDT will be used for repurchase and destruction. When 1 HOGT = 0.5 usdt, 300, 000 HOGT will be destroyed every day; When 1 HOGT= 1 USDT, 150, 000 hogts will be destroyed every day.
When TVL reaches 2 bn USDT and the rate of return is still 1 ‰, the daily income is 2 million USDT, of which 30% is used for repurchase and destruction, that is, 600, 000 USDT will be used for repurchase and destruction of hogts. When 1HOGT = 0.5 USDT, 1.2 million HOGT will be destroyed every day; When 1 HOGT= 1 USDT, 600，000 HOGT will be destroyed every day.
As we can see above:
- With the increase of TVL, the more funds are destroyed, the more HOGT is destroyed;
- The yield is floating, and the number of destruction will increase by 1 times in 2 ‰;
- The daily output is 400, 000 pieces. When the TVL reaches a certain amount, the daily destruction is greater than the output, reaching a dynamic balance.
As for the HOGT.COM Repurchase-destruction mechanism, this is only the first embodiment. There will be many application scenarios that need to destroy HOGT, such as the upcoming HOGT.com node and HOGT.com related alliance. After becoming a node/alliance, HOGT will also need to be destroyed.
Maybe there’s more need to be done, when the launch of CeFi and DEX, the Repurchase-destruction mechanism you met will be bigger and more destruction will be revealed.
It’s no exaggeration to say that when you don’t know how to cherish the HOGT in your hands, and when you find that the HOGT produced is getting less and less, you will wake up: after selling the HOGT that you didn’t know how to cherish, you can’t buy it back again!
Sorry, the Hogt you sold has been automatically repurchased and destroyed !