“A proud man, the result is always the pride in his own destruction.” --William Shakespeare
The meaning of burning is to rebuild and rebirth, that is the ‘spiral upward’, or ‘roller coaster’ time curve in the philosophy of life. Huge damage might break you deep in bones, but we believe that the most wonderful things should be the rise from the ashes without losing the attitude.


With the rapid expansion of Defi ecosystem, considerable traffic and users has flood in. In parallel with the DeFi boom, more eco-tokens are accumulating on-chain, with new mainchain ecosystems and loads of application emerging. Such situation means that tokens are continuously issued and glutted in the defi world, overwhelm the capacity of the Defi world. Correspondingly, the blockchain world could use the recast to burn and rebirth these materials, bringing surging drive to the originally overloaded ecology.

However, projects themselves gain benefits from the token burning process, the process is not a zero-sum game. During the token burning, token holders could also benefit from the process. Superficially, token burning will only benefit the project owner, but actually, both investors and project owners could benefit in this mechanism. Obviously, burning could help stabilize the value of the token and curb possible price inflation. Then the stability of the token incentive investors to hold the token and positively effect the token price, thus keeping the network functioning properly and the bandwidth stable. Token burning also demonstrates a confidentiality and reliability characteristic that is more evident in the early stages of tokenism.


What is the BlackHole protocol?

Blackhole protocol is an approval-free cross-chain burning platform based on Ethereum network. Any user or project governor could create a burning pool by holding BLACK and old token LP to permanently burn the old Token into a new Token, thus gaining ecological vitality.

Blackhole protocol originates from Ethereum network and gradually spread to Polkadot, BSC, Heco, SOL and eventually the whole blockchain world. And Black token will inflation suddenly at the very begining and flashly enter the deflationary model and keep deflating with the process of ecological reconfiguration.
Usually, burning methods and targets would vary from projects to projects according to the needs of ecological developments. For example, stable tokens like USDT, issued at the same time when they deposited into USD reserve. And burn an equivalent amount of tokens as a guarantee of value when the reserve is removed. Some exchange platforms spend platform tokens buying goods or online-services for burning purposes; Ripple burns a portion of its fees for each completed transaction. Such things means that the frequency and targets of burning approches vary. Some of them burn all at once, while others burn different amounts in different stages until they finally burn the established total amount described in white paper. The key element of the Blackhole protocol is that the burning mechanism aims to reduce the total supply of BLACK, changing the supply and demand of BLACK, then increase the value of BLACK within the ecology through continuous token burning.
Creating token is essentially an attempt to create new value. The developer releases new token and investors or institutions could send old tokens to the contract address, from where investors then receive new tokens. Since the new supply and demand relationship, those tokens are entitled new value, and the same value convey to the developers, which means the value actually increases twice at the same time.

By burning the old tokens sent by investors, the developers are actually transferring the value of the old tokens into new tokens, rather than trying to create new value out of nowhere. If the demand for the old tokens stays the same, then the remaining old tokens will increase in value, and the value of the new tokens is derived from the old tokens. No value is created out of nowhere.
Technical features and application scenarios of Blackhole protocol
The basic logic of the Blackhole protocol is to mint new tokens in proportion to the base tokens of the smart contract. It is innovative in the following ways.

Product Innovation - Openness and Compatibility of Black Hole Protocol Ecology
The Blackhole protocol acts as an approval-free burning protocol. Anyone in the protocol could create a burning pool with an approval-free invocation contract that can be directly infiltrated into any Defi project which needs burning incentive. In addition, Blackhole could achieve seamless connection with any project's user interface by the user-friendly features of open-source SDK and special smart contract.

Product innovation - Mutiple support for burning protocol
Native support for liquidity reward burning (creator-designed burning rewards), single token burning (with a single token as the burning token).

Product innovation - The top-notch mathematical deflation model     
Black Token is a special burning economic system that follows the geometrical progressio convergence model, in which all of Black Token will undergo "deflationary cycle". After 15 deflationary cycles, the tokens will be left less than 5%, and the value of the token will increase infinitely with the "deflationary cycle".

Technical innovation - NFT and cross-chain set-aside support
Blackhole protocol is designed with NFT concept and cross-chain support. With the tight timing, Blackhole protocol will start NFT rewards and cross-chain burning, making a solid foundation for penetrating a wider and larger ecosystem.

BLACK Tokenism

· Platform income (fees and governance).
Version V0.1 will be free to the projects, and then token burning fee and reward distribution will be taken in the future, which will be used to repurchase BLACK. Black stakers can also participate in governance directly through staking.
·Farming
Black Token's life cycle will be divided into three phases. Birth - heyday - infinite deflation. In the first stage of "Birth", Black Toekn will start staking and liquidity farming plans after the IDO.
Black plays a central role in the ecosystem, and its value mainly reflect in governance, a medium of ecosystem, and incentives of liquidity providing. As the Black deflation, the tokens would be deflation indefinitely.
Expected residual account after 15 cycles: 3518437 BLACK (≈3.518%)
Expected residual account after 20 cycles: 1152921.6 BLACK (≈1.15%)
Roadmap


Community Token Management Model


Contact us

Telegram Community
https://t.me/BlackholeProtocolOfficial

Telegram Channel
https://t.me/BlackholeProtocolAnnouncement

Twitter
https://twitter.com/blackholeburn

Medium
https://blackholeprotocol.medium.com/

Disclaimer
This article does not include elements of any contractual relationship. This article shall not be deemed to constitute a prospectus of any sort or a solicitation for investment or investment advice; nor does it in any way pertain to an offering or a solicitation of an offer to buy any securities in any jurisdiction.
For the avoidance of doubt, please note that the Protocol has not been fully developed. Any statements made about the Protocol are forward-looking statements that merely reflect BlackHole protocol’s intention for the functioning of the Protocol. There are known and unknown risks that can cause the results to differ from the forward-looking statements.
BlackHole protocol does not intend to express investment, financial, legal, tax, or any other advice and any conclusions drawn from statements in this article or otherwise made by BlackHole protocol shall not be deemed to constitute advice in any jurisdiction.
BlackHole protocol’s intended purpose of the Tokens is to be used as means of payment for the services that will be offered within the Protocol (the “Services”). The purchase, ownership, receipt or possession of Tokens carries no rights, express or implied, other than the right to use Tokens as a means to enable usage of Services in accordance with the then applicable terms of use relating to the Services offered within the Protocol. The Tokens do not represent or confer any ownership right or stake, share, security, or equivalent rights, or any right to receive future revenue shares, intellectual property rights or any other form of participation in or relating to the Protocol, BlackHole protocol, Service Providers or any of their corporate affiliates, other than any rights relating to the provision and receipt of Services, subject to the applicable terms, conditions or policies that may be adopted by participants in the Protocol.

Staking (Staking Mining) has been very popular recently. It seems that you can’t say hello to others in the currency circle without knowing that Staking.

Staking is essentially a product that is similar to the fixed income of the currency circle. The bear market environment has given it the soil for its development. It provides scenarios that users can accept in the short term, such as node services, especially the special time when the exchange joins. The public knows better that 2019 is the first year of Staking.

Staking is a verification process under the POS consensus mechanism. In the POS mechanism, all nodes need to pledge tokens to participate in the consensus. At the same time, the public chain network verifier is also the holder of the token, and the pledger needs to lock their tokens as collateral , In exchange for the right to verify blocks and mining rewards. In the POS consensus mechanism project, all miners must hold coins, and anyone can participate in staking to “earn coins” through encrypted asset mortgage lock-up. If POW tokens used to provide rewards through calculations, then POS participates in staking through encrypted asset mortgage lock-up.

Although there are still people who are skeptical about whether staking can make money, it has to be said that instead of letting “digital assets” lie quietly in their wallets, most people choose to do staking to increase the share of Token in the entire network. Share. In order to make this income truly reach a positive value, DEMOS, which has the advantage of a public chain, adopts a democratic voting method to provide high income from staking. The process is as follows:

Users who want to participate in staking first need to open a democratic certificate, bind the corresponding mining pool, and then use DOS to buy votes (refer to the figure below for the detailed process). DEMOS adopts a POW+POS dual consensus mechanism, and it is set that when POW miners generate each block, at least 5 votes are required for confirmation, and there can be up to 20 votes. 30% of the DOS rewards for block generation will be shared equally by the selected voters, 60% of the rewards will be obtained by POW miners, and the remaining 10% will be entered into the community account as a community fund. The process from voting to the selection of a vote is called a smashed vote. If the smashed vote is successful, the principal and rewards will be credited to the account at once. As of the time of publication, the ticket price is about 321.86DOS, the unit’s blast ticket reward is about 37.32DOS, and the rate of return is as high as 11.6%.

Since voting is randomly selected, the vote-popping cycle is also random. Participants can purchase multiple tickets to increase their vote-popping rate.

DEMOS’s mature ticket mechanism (that is, the ticket pool can only hold up to 40960 tickets at the same time) guarantees that the cycle of votes will not exceed 142 days. Tickets that have not been selected after this time will be returned. The selection rate is only 0.5%. According to the feedback from the DEMOS community, the average cycle of the current vote burst is about 28 days, and the vote burst in the fastest day.

The DEMOS autonomous community has a mining pool freely formed by participants. The role of the mining pool is to vote on behalf of miners when they need to vote, and vote online 24 hours a day. As of the publication time of this article, DEMOS has 13 mining pools with a total pledge amount: 848,048. The largest mining pool pledge amount is 374,069, which shows the popularity of DEMOS Staking.

For the cryptocurrency industry, staking in the POS mechanism has two main functions, namely, maintaining security and incentivizing user participation. Just like the founder of Babbitt said: “The biggest significance of staking is to increase community participation, because when participating in staking, the vast majority of token holders and project parties are communities of interest.” DEMOS Staking On the one hand, the marketization of revenue encourages users to participate in DOS voting (staking) to increase revenue, and on the other hand, it also provides effective guarantees for the decentralization and security of DEMOS.

Staking economy has become an emerging model for blockchain participants to obtain stable income. As more and more investors pour into this track, it is foreseeable that Staking proceeds will eventually sink into the community economy, and the hidden value will inevitably be unlimited.

DEMOS, as the global basic public chain, is here the track is bound to go straight ahead.

Website: www.doschain.org