Woo Network (WOO) altcoin developers announced in their statement that they will burn about 24% of the WOO token supply. According to the team’s statement, the Woo Network tokenomics refresh includes a number of improvements to token distribution. These improvements are part of an effort to address current token distribution issues. The Woo altcoin replenishment will begin with the planned burning of 705 million WOO tokens, currently worth $127 million.
In the cryptocurrency world, token burning means that coins are sent to a burning address, destroyed and removed from circulation forever. The planned burn will remove 24% of the WOO token supply. According to the announcement, the tokens to be burned will come from funds given to WOO Ventures, WOO DAO, and the project’s insurance fund.
According to Woo’s statement, 147,417.657 tokens from WOO Ventures, 259,136.204 tokens from WOO DAO and 298,697,900 tokens from WOO insurance fund will be part of the coin burning process. In addition, the project will liquidate these segments after the token burn. WOO Ventures was supposed to be the investment arm of the project, but the announcement cited “a series of challenges” as the reason for stopping the venture. Following the token burning, Woo Network announced that it will take initiatives to improve the use of its native token.
The announcement of the token burn led to a significant increase in price action, with WOO gaining approximately 20% in today’s trading. Tuesday’s price increase is in line with the positive start of 2023 for the Woo token, which has risen over 45% in the past seven days.