Community Currency Burning and How it Stabilizes the CC Economy

Hey METABBS!

As many of you have seen, there were some new updates to the distribution of profit from post's NFT purchases. (Link to updated FAQ post on NFT purchases)

Within this change we now see 66% of the CC profit from new purchases being burnt instead of split to board owner & publisher.

This does not change how your cashable balance is increased, you still earn the same share of ad revenue from published or owned posts.

To understand why it makes sense to burn Community Currency, you need to take a look at the Community Currency tokenomics.

As we can see in the infographic, Community Currency is generated through bonus rewards given for engaging within a BBS. You receive $1.50 in CC a day just from visiting and purchasing a single post, you can earn even more through likes and referrals from published posts.

Without a burning mechanism, an increasing amount of Community Currency tokens would be added to a board's internal ecosystem while none would effectively be removed. The more users that engage, the more Community Currency that is generated; Over the long term this can cause an imbalance in a board's economy via inflation which would hurt how new users could engage with the platform and cause divides in the userbase.

It's important to remember here that your cashable balance, the amount of CC you can convert to BBS tokens, is not effected by this change. Publishers and owners still receive the same share of ad revenue earned from posts, with 100% of ad revenue payouts increasing the cashable balance, so users will still earn their cashable balance at the same rate as before.

Thoughts on the new mechanics? Questions? Let me know!