New Crypto Token ‘DestroyerDAO’ by Unknown Developers Aims to be an All-In-One Deadcoin
DestroyDAO is a cryptocurrency promising investors an ultimate “shitcoin” to replace the current low-value cryptocurrencies. The DestroyDAO is a recent development that will use the coin burn system to gain its own value by destroying other shitcoins. We focus on the DestroyDAO viability in today’s cryptocurrency world and whether the coin has an actual value proposition or will end up as another low-value coin built on the grave of other shitcoins.
Before we dwell deep with the economics of the DestroyDAO token, we need to explain the origins of coin burning and how the process works.
Coin Burning And Proof Of Work
The first case of cryptocurrency token burn is dated back in 2012 and was introduce by Ian Stewart. Stewart further developed the burn process to create the proof of burn mechanism that is used widely among cryptocurrency communities. The burning process destroys a number of cryptocurrencies in hope that the remaining volume increases in value.
The proof of burn concept has been adopted by a number of projects since inception. The number of projects choosing to burn their tokens to increase value is steadily increasing in the past half-decade. Some of the coins that have experienced the success of burning tokens include Binance Coin (BNB), Siacoin (SC), and ANON (ANON). Other small-cap tokens, however, have failed to replicate the success of burning tokens to increase value such as BitMart Token (BMX) and Equal token (EQL).
How Will DestroyDAO Work?
To get a clear picture of how the DestroyDAO token will work, we need an illustration.
A cryptocurrency project named, Carbon Kill (CKL), is introduced with a total of 1000CKL tokens on the ecosystem worth $1000 USD. This indicates that each CKL token is worth US $1.00 in value on the ecosystem. If the development team at Carbon Kill burns a total of 200 CKL tokens, then economically speaking, $200 USD value is also destroyed.
However, in the cryptocurrency universe, the burn of 200 CKL tokens is made with the idea that the remaining 800 CKL tokens will still be worth $1000 USD. Each token will appreciate the value to $1.25 USD due to the decrease in supply.
Impact Of The DestroyDAO
DestroyDAO functions in a similar way but instead of burning the DestroyDAO tokens, the project will allow users to burn other tokens. The project focuses on burning of shitcoins such that Instead of self-burning, the project aims to burn other altcoins to raise its own value.
While the DestroyDAO does not hold any kind of use past offering a platform to destroy coins, the psychological impact of coin burning in increasing value will play a huge role in promoting the token. The success of the project depends on the supply-demand factors where a reduction in supply with demand increasing causing a spike in price.
DestroyDAO, however, lacks the demand required to set the burning process in motion which puts the future value of the token in jeopardy. The rise in the value of any asset that occurs as a direct result of its partial destruction will always be proportional to the cumulative power the asset holders have. If the holders of the asset feel DestroyDAO holds no added value, the token will be another shitcoin aiming to save shitcoins in the cryptocurrency field.