According to the original market cap which set to 2 billion coins, the pre-mined coins exist brings unbalance, unfair, and threatens price stability. Additionally, it undermines decentralization because one entity (ECOCHAIN founders) hold so much staking power. These 200 million coins were never intended to be sold in the market or even used as spending fees on the virtual machine. The purpose was purely technical and to strengthen security.
But after the Themis Hard Fork, the new cap was 300 million coins. ECOChain decided to destroy another 206 million coins after the hard fork.
The 206 million ECOC coins were sent into 2 addresses in smart contract to be locked forever, which are;
Address 1: “72e6f8182b99ecbd7bf49f437ffe1f207d0c62bb”
Address 2: “ea6763f3c6c4f4ebdffc07909301c41fabe9b7fc”
This brings the actual cap to 94 million with the circulating supply, 243 million, which 206 million coins were burned out. So, the actual circulating supply is down to 37 million. This also generate the following benefits:
- It brings back staking balance because the coins can’t be used by anyone. So, the actual cap (the final circulation) will be 96 million only. The staking power will be in many hands again, as it is proper for decentralization
- It cultivates the feeling of fairness between the community and users
- It brings price stability and removes the fear of inflation; the destroyed coins can’t be used; they can’t be sold. They are out of circulation forever.
- The new reward release speed will be on par with the current circulation. This will make the price depends on real demand, the real economic value that stems from fundamentals
- Scarcity will help the price to rise slowly. This will attract more investors and funding in the long run.
- Full decentralization is achieved because even the founders will not have more staking power than the others.
How to check
How can I check that 206 Million ECOC are unconditionally locked forever?
You must do the following:
- Read the smart contract source code
- Complile using a compiler or a tool (for example remix)
- Compiler options: evm-version: byzantium, optimize: true, compiler version 0.4.26 (commit 4563c3fc5d243411d84336c069f7b45891f65c35)
- example for CLI:
solc –optimize –bin –abi –opcodes –evm-version byzantium lockForever.sol
- check the binary code or the opcode on ECOCHAIN’s explorer hereand here. The bytecode and opcodes must be exactly the same.
- Check the balance of the smart contracts at hereand here The total must be 206,000,000 ECOC
FAQ
Q: Why do you lock the ECOC? And Why 206 million coins?
A: 200 million coins where pre-mined and the rest were staked. For reason of fairness and staking balance we must destroy them. You can read the white paper for more details. Destroying ECOC is not allowed on protocol level. We had two options: either send them to “zero” address or lock them forever in a smart contract. We decided the latter because it is more transparent and also easier for the users to check.
Q: Can the coins be released in the future?
A: No, it is impossible.
Q: What will happen if I send ECOC to the contract?
A: The coin sent over will be lost forever. Please DO NOT do that as the coin will not be retrievable!
For more question, please email us at support<<@>>ecoc.io