TLDR: For every 100k additional PANDA holders, HashPanda is burning 1% of all supply. This will result in a faster distribution, lower market cap, higher upside potential, and increased scarcity of PANDA tokens.
HashPanda was launched with the mission to create a fair and decentralized token by distributing it to hundreds of thousands of users on BSC. Our distribution strategy is simple: out of all the public addresses that transact on BSC, HashPanda randomly picks a couple thousand each day and sends them approx. $5 worth of PANDA tokens.
This distribution mechanism prevents whale-dumps, distributes the supply fairly, and creates a widely distributed (=decentralized) token. Investors have rapidly come to realize the value of such a token, as reflected by HashPanda’s market capitalization, which grew to 10 million within 2 weeks of launch.
In response, we had to reduce the distributed airdrop amount to match the intended value of $5: from 920m PANDA tokens during the first 3 days, to 460m tokens during days 4–12, to 230m and to 92m, the current amount being distributed daily to randomly selected BSC addresses.
With the upcoming bull cycle, we anticipate a further increase in demand for HashPanda tokens, requiring an additional reduction of the airdrop amount to match the intended $5 value.
The supply we have allocated to our “decentralized distribution” mechanism is 400T tokens, or 80% of all circulating PANDA supply (since 500T tokens were burned at launch). To reach a completed distribution targeting 1 million users, each airdrop must number an average of 400m tokens. By lowering the amount, due to the rapid HashPanda token price increase, we will either have to distribute tokens to more than 1 million users or incorporate a burn strategy.
The two options:
1. Distribute PANDA tokens to a dynamic number of holders based on an amount pegged to $5. At the current amount of 92m tokens per airdrop, this would entail 3–4 million users receiving PANDA tokens through our decentralized distribution mechanism.
2. Distribute PANDA tokens to a fixed number of holders and incorporate a burn strategy to avoid prolonging the duration of the distribution.
After extensive discussion, we have concluded that it would be in everyone’s best interest to introduce a gradual burn strategy, which would offer the greatest economic benefits.
The HashPanda Burn Strategy
The strategy is simple. For every 100k additional PANDA token holders, HashPanda will burn 1% of all tokens (10T) from the treasury distribution wallets, until the amount of burned tokens reaches 200T (equivalent to 20% of all minted supply) or the 4 distribution wallets have been completely depleted. The benefits of this strategy are:
- The distribution will be completed in a shorter time frame
- The price remains stable; there is no loss in dollar value for each token
- HashPanda’s market cap is reduced (and the potential upside increases)
- Circulating supply is reduced, increasing the scarcity of PANDA tokens
We are distributing PANDA tokens as intended, to hundreds of thousands (potentially millions) of holders, making HashPanda one of the fairest and most decentralized tokens on BSC. At the same time, we are burning 1% of all tokens (10T from the treasury distribution wallets) for every additional 100 thousand PANDA holders.
This does not affect the price but has a positive effect on market cap, lowering it and therefore increasing the upside potential. Furthermore, burning 1% of tokens increases the scarcity of the existing tokens in circulation, which should rapidly be reflected in the PANDA token price. Finally, it reduces the time required to complete the distribution process.