What is the ADS burning?

March 10, 2023
1 min
What is the ADS burning?

ADS burning is a mechanism devised to ensure that there is no free-floating supply of ADS.

We have two burn-like mechanisms embedded in our system. One is in our blockchain itself.

We put all fees collected from transfers and other blockchain operations into a fund. The blockchain rebalances the circulating supply every 2048 blocks by distributing liquid staking rewards to accounts with a positive ADS balance and activity in last 12 months.

For example, if there are 100,000 ADS in unpaid staking rewards balance, a person with 387582 ADS (1% of the total) will receive 1000 ADS of the reward, while a person with 3875 ADS will receive 10 ADS of the staking reward.

Our AdServer network works around the principle that 1% of ad turnover is sent to a burner Address. Those funds will be locked forever or until we establish DAO-style governance and there will be future decisions to employ those funds for network benefit.