A strategic quarterly burn of 50% of any profits ensures that the FUNToken retains value into the future.
What profits are they talking about? Can anyone explain?
FUN tokens are pre-minted with no further issuances in sight. There is a maximum supply of 17 billion FUN tokens created in an official FUN pre-sale on June 22, 2017. More than 80% of all tokens were distributed to industrial investors and purchasers during this pre-sale event.
Ok, so 80% of 17 billion is equal to 13.600 billion, correct? This was the amount distributed to early investors.
While 11.173B of the minted tokens were reserved for a second pre-sale, it was later removed from the schedule. More than half of these reserved tokens (55%) were burned, as they were categorized as surplus. The remaining 4.7B tokens were transferred to new owners in 2021. The supply is now fixed (no more can be minted) and is reducing with the quarterly burn.
Then how could 11.173 billion tokens be reserved for a second pre-sale, since there were only 3.400 billion tokens left, considering 80% of the tokens were already distributed during the previous pre-sale?
Trading supply is further reduced 1:1 with all XFUN tokens issued on Polygon so as the usage of XFUN increases so FUN trading supply will reduce.
As supply continues reducing, the chances of seeing FUN increasing in price become more real, although it should be also a good idea to decrease interest rates paid to stakers as well, since heavily inflated rates don't help making the token's price rise within time. Anyway, to better understand FUN's supply the above points have to be further explained and enlighted.
https://coinmarketcap.com/currencies/funtoken/