BlackHole Protocol Introduction
What is BlackHole Protocol?
Blackhole Protocol is an approval-free cross-chain burning platform based on Ethereum network. Any user or project governor could create a burning pool by holding BLACK and old token LP to permanently burn the old Token and mint a new token, thus gaining ecological vitality and rewards
Blackhole Protocol originates from Ethereum network and gradually spread to Polkadot, BSC, Heco, SOL and eventually the whole blockchain world. The creator holds X tokens and Black Token to create a black hole burn pool without a license. This burning mechanism will miny new token Y which is used as a reward when using the burning method.
I. V0.1 Fermion version will be launched soon
After 3 months of development and testing, we are pleased to inform everyone that the first version of BlackHole Protocol, V0.1 Fermion, has been fully developed. BlackHole Protocol is planning to launch with the first single token burning pool and the “IBO” (Initial Burning Offering) sub-module in a few days.
Currently, the single token burning pool and IBO are undergoing the last stage off formal environment testing.
BlackHole Protocol V0.1 Fermion version has completed deployment on multiple mainnet such as Ethereum, BSC, HECO and OKchain (the first official launched project’s mainnet depends on the first burn decision, which may be likely on Ethereum/BSC/HECO).
II. Fermion Version Overview
The Fermion version contains the following modules.
· Single Token Burning Pool
· Staking Farming
What is Token Burning?
Token burning is the permanent removal of an existing cryptocurrency from circulation.
The practice of token burning is common in this industry. Token burning is a deliberate action taken by a cryptocurrency creator to “burn” (or remove from circulation) a certain number of tokens in existence. There are several reasons for burning tokens in this manner, but generally speaking, it is for deflationary purposes. While large blockchains like Bittoken and Ether do not typically use this mechanism, cottage tokens and small tokens often use burning to control the number of tokens in circulation. This provides a better incentive for investors.
The burn mechanism is unique to cryptocurrencies, as ordinary fiat currencies are not usually “burned”, although the circulation of fiat currencies is subject to separate regulation. Token burning is similar to the repurchase of shares by a public company, except that the latter reduces the number of shares in circulation. Nonetheless, token burning has many unique uses for different purposes.
About Single Token Burning
To determine the efficiency of the burning mechanism, The single Token Burn will be using a mathematical model that follows a linear function. Putting the X token (X is used as variable to represent the token that is being burned) in the burning pool, the algorithm will directly send it to the Blackhole address(Burning Address)
Note: The Burning curve function F(x,y) is set up to be freely configurable in accordance to the users will. The user can collect the rewards; 1. During the whole burning process, 2. After the burning cycle.
IBO — Initial Burning Offering is the innovative token initial allocation scheme, which allocates new tokens to burners by burning mainstream value tokens for projects that are issuing tokens for the first time.
There are many problems in the current IEO, IDO, LBP and other diverse initial token issuance schemes, for example: many participants in the public pool, whale occupy too much weight in the public pool by pledging a large number of mainstream tokens, and ordinary users are allocated a small amount.
At present, for the first token offering, there is a general situation where big investors gets a provale alloctions and after the listing, the project side faces a lot of selling pressure and secondary market users face the problem of taking over at the early stage of online trading.
IBO can realize the value conversion of burning value tokens and new tokens by configuring the type, amount, and destruction of burning assets, so that the token itself, which gets the first issuance, has value before it is listed, improving the stickiness of participating users and laying the foundation for the healthy development of the project.
On Burning Logic advantages.
The legitimacy of community consensus promotion: tokens are not promoted through IDO, ICO and other fundraising means, making project funds too concentrated in the hands of project parties.
Protocol upgrade: Communities in stalemate can upgrade their protocols by IBO, and several well-known project parties are already in contact with Blackhole.
In some countries and regions, ICO issuance of tokens is considered a legally prohibited act. However, issuance through IBO has some legal legitimacy and is in line with the spirit of blockchain.
Some projects can invite community users through the Black Hole protocol in a targeted manner.
About Staking Farming
V0.1 Fermion version will be launched with the farming function at the same time, which is expected to be opened after the end of the first burning cycle. Users can enjoy the liquidity rewards of single token, dual-tokens or even multiple tokens or LP by staking.
In the single token burning phase, the burning pool will be opened one after another according to the schedule, and users will participate in the burning rewards according to the rules of the burning pool. Rewards can be redeemed during or after the whole burning process.
BlackHole Protocol has now reached liquidity reward cooperation with several TOP projects, please stay tuned to the official Twitter and keep an eye on the official announcement.
Q2 Phase V0.1 Fermion version (deployment completed)
Q3 Phase V1.0 Primordial version
· Cross-chain burning protocol. Supports token burning on different mainnets , e.g. burning BEP20 tokens and the output will be ERC20 tokens
· Launching of B-pair burning pool. Supports dual-token burning (BLACK will intervene in the burning pool as mandatory fuel).
· Governance mechanism V1.0, Establishment of BLACK governance committee to make decisions on burn plan and bonus rewards for token holders through voting rights.
Q4 Phase V2.0 Singular Toorus version
· Supports NFT Burning. Also rewards user s with NFT.
· Governance mechanism V2.0 Realize community autonomy.
IV. BLACK Vision and Application Scenario Planning
“A proud man, the result is always the pride in his own destruction.” — William Shakespeare
The meaning of burning is to rebuild and rebirth, that is the ‘spiral upward’, or ‘roller coaster’ time curve in the philosophy of life. Huge damage might break you deep in bones, but we believe that the most wonderful things should be the rise from the ashes without losing the attitude.
With the rapid expansion of Defi ecosystem, considerable traffic and users has flood in. In parallel with the DeFi boom, more eco-tokens are accumulating on-chain, with new mainchain ecosystems and loads of application emerging. Such situation means that tokens are continuously issued and glutted in the defi world, overwhelm the capacity of the Defi world. Correspondingly, the blockchain world could use the recast to burn and rebirth these materials, bringing surging drive to the originally overloaded ecology.
Our experience in exploring and trying in the blockchain world especially DeFi field, it is hard to sustain alone, we must share resources, link up product to product, token to token, for example, AC has integrated DeFi head resources, ignite DeFi again from the market downturn through linkage, and wake up the market vitality. And we believe that approval-free third-party platforms and third-party tools are the future! BlackHole is the same, we have the business of to Business and the function of to Customer, and we have partners with excellent technology, strong community and rich resources. Through BlackHole Protocol, we hope to help improve the blockchain ecosystem, be the “scavenger” of digital assets, and promote the healthy development of the blockchain industry.
We have a careful and long term plan for BLACK as a whole, and the following is the BLACK application scenario plan.
1. Open Farm function, provide BLACK rewards for liquidity providers
We have reached strategic cooperation with many star projects, and will go live with Farm Pool in Fermion and iterations, and will open up multiple types of mining pools such as single coins, B-pairs and LPT.
2. Deflationary mechanism
We will iterate the B-pairs dual coin burning pool in Q3 V1.0 Primordial version, BLACK tokens will be used as mandatory fuel for old tokens to form burning pairs, 20% of the BLACKs produced by the burning pool will enter the black hole burning pool for permanent destruction.
3. Commission plan
We are aware of the limitations of teamwork and the importance of cooperation, so we will launch a committee program in Q3 V1.0 Primordial to start the governance mechanism V1.0.
In this program, users can pledge or hold BLACK to get some rights, including but not limited to decision making and advice on the selection of Burning Pool projects, as well as the right to directly recommend projects, staking = governing rights.
It is worth noting that in the DeFi world, all governance modules are in their infancy, which seems to make the transmission of information about the project fairer, but it also brings side effects such as reduced efficiency and only a small number of people enjoying democracy.
So we will gradually turn on this feature experimentally, the first batch of which will be selected among the early investors and community volunteers we work with to experiment with the governance mechanism V1.0, and then fully enter the governance mechanism V2.0 in Q4 when we have gained some experience.
4. Community Contribution
We have a long term marketing incentive plan for community activity and new user growth. If you are willing to work or contribute to the Black Hole Protocol, from a message delivery or mentoring a new user, to building more consensus for the Black Hole Protocol or even working with us, then please contact us and you will receive a long term BLACK reward based on your contribution. Details of the rewards will be announced eventually as the marketing campaign progresses, so follow our official Twitter feed and stay updted.