1. Why are/were you buying CAGE on an exchange if people are supposed to swap their CAGE for BARR? Are these funds going to be burned too?
We've already burned 5 billion that we bought on exchanges. We will burn everything we buy.
Most people won't take the time to swap for BARR, so they can participate by selling to us.
If they just want to dump and cash out, it's much simpler to dump their CAGE. Otherwise they would just burn it, get the BARR, and then dump the BARR immediately anyway. Either way they get about the same amount of money, since we're swapping BARR at an equivalent value to what the CAGE is selling for.
As always, the coins we buy can never be dumped again because we're burning them. Every other pump must eventually have a dump - people will sell the coins they bought. Only BARR gives you a pump with no dump.
What we're really taking is part of your marketcap; if we burn $5,000 worth of CAGE and issue $5,000 worth of new BARR, then our marketcap goes up by $5,000 and CAGE goes down by $5,000. The price per coin can still stay the same, but we've brought some of your coin supply to our blockchain.
2. How do we verify that the burn address is unspendable?
Our burn addresses come from this list:
http://earlz.net/view/2014/10/22/0340/provably-spendable-altcoin-burn-addressesSome explorers recognize these as burn addresses and mark the coins as destroyed.