Uniglo (GLO) wants to implement revolutionary combustion mechanism that will compete with projects like Shiba Inu (SHIB), Litecoin (LTC) and Bitcoin (BTC).

Burning is a method of destroying tokens to create scarcity and increase the value of the remaining tokens. This is a common practice in the cryptocurrency space and is often used as a way to reduce inflation.

Uniglo (GLO), a project that has garnered a lot of attention lately, aims to implement a revolutionary combustion mechanic. This mechanic will allow Uniglo (GLO) to compete with some of the biggest players in space such as Shiba Inu (SHIB), Litecoin (LTC) and Bitcoin (BTC).

Uniglo (GLO) and its revolutionary combustion mechanism

The Glo Foundation launches Uniglo (GLO) as a hyper-deflationary asset-backed social currency on the Ethereum network, with intentions to build a community-driven ecosystem with active users and a volatility hedge coin.

The main tool for Uniglo to achieve its goals is the ultra burn mechanism. Under the Uniglo protocol, part of each transaction is automatically burned or destroyed. This reduces the overall supply of GLO tokens, making them scarcer and more valuable over time.

In addition, the Uniglo team plans to use part of the fees collected from transactions to buy back and burn GLO tokens. This further reduces the circulating supply and increases the value of the remaining tokens.

The buyback-and-burn practice is directly linked to the profits of Uniglo Vault, which is funded by 5% transaction fees. Using the DAO voting system, the community decides which assets to sell or buy to expand the treasury, and the proceeds from those assets are used to buy back and burn $GLOs.

Uniglo’s burn mechanic is a powerful tool that will create a virtuous cycle of scarcity, demand and value for the GLO token. This is sure to make Uniglo a project to watch in the coming months.

How does Uniglos Burn Mechanic compete with SHIB, LTC and BTC?

Shiba Inu (SHIB), a famous meme-based cryptocurrency, is probably the cryptocurrency with the highest and largest burn rates. Shiba’s value has fallen dramatically during the current bear market. Hence, they felt the urge to develop an official website where investors would send SHIBs to dead wallets and burn themselves. Last week, the community burned more than 1.2 billion SHIB.

For Litecoin (LTC), one of the most widely accepted cryptocurrencies and supported by over 2,000 merchants and stores worldwide, burning is not a widespread practice. Nonetheless, the Litecoin supply is structured to decrease over time in order to preserve the coin’s value.

Speaking of BTC, although the creators never burned the bitcoin stash to artificially inflate the price, 3.7 million bitcoins have been lost due to a variety of reasons including loss of access to private keys, death, and more. Bitcoin is the dominant cryptocurrency by market cap. Therefore, it does not need to be burned to increase in value.

These three projects are widely used cryptocurrencies with different goals and solutions. However, they are all subject to market volatility. Recent bearish trends have shown that even Bitcoin is not an effective hedge against inflation and volatility. And when Bitcoin struggles, other currencies fall as well.

Therefore investors with bear market experience are shifting their focus to Uniglo.

bottom line

The burning mechanism is designed to help Uniglo (GLO) reach its full potential and become a leading cryptocurrency. $GLO is scheduled to be listed on Uniswap in October. Until then, investors can join the army of early adopters by purchasing $GLOs on the site and taking advantage of the pre-sale bonuses.

More information about Uniglo:

Join the presale: https://presale.uniglo.io/register
Website: https://uniglo.io
Telegram: https://t.me/GloFoundation
Discord: https://discord.gg/a38KRnjQvW
Twitter: https://twitter.com/GloFoundation1

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