Arkreen’s $AKRE Token Burn Mechanism and Plan: A New Era of Sustainable Growth
The Arkreen Foundation has launched a structured $AKRE token burn plan to ensure long-term sustainability and maximize the ecosystem’s value. This plan is designed to reduce the total supply of $AKRE tokens and align the token’s utility with genuine on-chain green asset growth. Here’s how it works:
- 80% of the service fee from on-chain utility revenue, paid in $AKRE tokens, will be burned.
- 20% of the revenue will fund the operational expenses of the Arkreen Foundation.
Milestones for $AKRE Token Burn:
- November 2024: A one-time burn of 10,394,544 $AKRE tokens (80% of the total 12,993,180 $AKRE tokens) will be executed. The total 12,993,180 $AKRE tokens represent all service fees collected from on-chain issuance activities by the end of October 2024.
- December 2024 Onward: Monthly burns of $AKRE tokens based on the prior month’s service fee revenue.
Why $AKRE Token Burn Matters:
Burning $AKRE tokens permanently reduces its total supply, enhancing its value as a utility token. By aligning with genuine on-chain green asset issuance and offset growth, the burn plan ensures Arkreen’s utility token supply remains sustainable and reflects the external value capture of the ecosystem.
This initiative represents a significant milestone in Arkreen’s mission to build a global decentralized renewable energy network and inclusive climate action platform, positioning $AKRE as a valuable driver of global carbon neutrality.
Key Use Cases for Arkreen’s Utility Token $AKRE
$AKRE as a Utility Token:
The $AKRE token serves as the cornerstone of Arkreen’s ecosystem, playing a pivotal role in capturing value and incentivizing climate-positive actions across on-chain green asset transactions. It underpins the network’s functionality and sustainability. Users utilize $AKRE tokens to pay service fees for:
- On- chain issuance green assets, including tokenized renewable energy certificates (AREC/ART) and green energy.
- On-chain offset/redeem green assets.
- On-chain trading green assets via future marketplace functionalities.
Token Model — A Dual Approach to Value Creation:
- Supply-Side Value: As more renewable energy activities and green asset issuance occur, service fees grow, driving $AKRE’s intrinsic value, the greater the value captured by the network.
- Demand-Side Value: Increased voluntary carbon offset activities translate into higher offset service fees, boosting the ecosystem’s utility and relevance.
Token Mechanism — Capturing Value in Green Asset Transactions:
Arkreen’s token model merges:
- Public Welfare: Motivating and rewarding climate action with utility tokens.
- Commercial Viability: Capturing value through service fees via utility tokens on the decentralized green asset network.
This dual mechanism underpins Arkreen’s DePIN (Decentralized Physical Infrastructure Networks) strategy, fostering a balance between incentivized climate action and economic sustainability.
Service Fees for On-Chain ART Issuance
Current Fee Structure:
- Pre-Mainnet: 1 ART issuance fee = 10 $AKRE
- Post-Mainnet (Before September 2024): 1 ART issuance fee = 100 $AKRE
- Post-September 2024: 1 ART issuance fee = 1000 $AKRE
Cumulative Service Fees:
- Pre-Mainnet Total is 72,936 $AKRE: a total of 7,293.641 ART was issued, receiving 729,364.06 tAKRE. After converting at a ratio of 10:1, the amount equals 72,936.406 AKRE. (tAKRE converted to $AKRE at a 10:1 rate).
- By the end of September: the actual amount of AKRE received was 12,169,480 $AKRE
(128,259.079−7,293.641)×100+72,936.406 =12,169,480.229 $AKRE - By the end of October: the actual amount of AKRE received was 12,933,180 $AKRE
(129,082.779−128,259.079)×1000+12,169,480.229 =12,993,180.443 $AKRE
For more details, please refer to the table below.
Define Service Fees for On-Chain ART Offset
Arkreen begins implementing service fees for on-chain ART offsets starting November 2024 (1 ART offset fee = 1000 AKRE). Until the on-chain ART offset smart contract is updated to support service fee payments, the Arkreen Foundation will sponsor these fees on behalf of users.
Future On-Chain Trading Service Fees
Arkreen aims to introduce on-chain trading services as the ecosystem matures. These services will connect supply and demand, creating a seamless marketplace for green assets. Details of trading fees will be announced with the launch of this feature.
Conclusion: Driving Sustainability Through $AKRE Tokens Burned
The $AKRE tokens burned plan reinforces Arkreen’s commitment to building a decentralized global renewable energy network and community-driven inclusive climate action platform. By systematically reducing $AKRE supply through on-chain Issuance & Offset service fee burns, Arkreen enhances token value while encouraging climate-positive actions.
Stay tuned for the November 2024 $AKRE tokens burned event and the monthly updates. Together, we can scale inclusive climate action and accelerate global carbon neutrality.
By Arkreen on November 25, 2024.