The TARS developer team decided to burn 100 million TAI tokens, which have a market value of approximately $20 million at the time of writing, with one TAI trading for just below $0.20. According to the team’s X post, when they were burned, the market value was around $15 million.
The token’s value surged 40% in the immediate aftermath of the burn, and the increase was 20% at the time of writing. However, it has yet to reverse a recent crash.
TARS Protocol’s market cap is up 19.79% to $24,247,425, and its trading volume increased by 186.78% in the last 24 hours. The burn resulted in a 10% supply reduction, signaling to investors that TAI has a built-in mechanism to prevent inflation. This enhanced confidence in its long-term value and strengthened TAI holders’ trust.
According to the X post, weekly TAI burns will continue with revenue from the TARS Cloud Program. TARS Protocol’s main revenue sources are value appreciation of TAI tokens as the ecosystem expands and demand increases, platform fees collected from users, partnerships, and custom solutions, where TARS offers tailored AI-integrated products for specific client needs.
TAI price to increase with scarcity
A reduced supply increases the scarcity of a cryptocurrency. Scarcity often leads to higher demand, which can drive up the price. Coin burns reward holders and stabilize the market.
Reduced supply can exert deflationary pressure, potentially leading to a more stable store of value. If TAI is perceived as a stable value store, long-term holding will be encouraged, which can reduce the circulating supply. This contributes to the same benefits as an actual reduction in supply.
TAI supply and demand: the essence
As the supply drops and demand remains constant or increases, the value of each TAI will tend to appreciate – assuming demand does remain constant. On that note, we need to look at TAI’s actual use cases.
TARS Protocol is an AI-driven modular platform designed to empower projects with one-stop Blockchain-as-a-Service. It bridges the gap between Web3 and AI by giving AI-powered tools and services a unified platform.
TARS uses AI to provide Web3 projects with cutting-edge solutions. Its architecture allows for high customization, empowering developers to choose and combine the specific AI services and tools that are most suitable for their projects.
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