SIX Token Announcement: About Supply Management Activity
This transparency report has been prepared to explain the supply management activity employed to regulate the flow of SIX tokens across multi-chain environments. Currently, these environments include Ethereum, BNB Smart Chain, Kaia (formerly Klaytn), Stellar, and SIX Protocol.
The outlined supply management measures aim to provide more effective and proactive solutions for maintaining optimal supply levels while safeguarding SIX holders from tokenomics-related risks.
Introducing Pre-Quarterly Reserved Supply Burn
Since the inception of the SIX Protocol, the SIX ecosystem was established on the SIX Protocol chain. To support the network’s early growth, SIX Network subsidized SIX tokens for gas fees on the SIX Protocol. As part of this system, SIX tokens are created with every block. The supply has been controlled through a Collateral Account and Post-Quarterly Burn to avoid excessive supply.
While the aforementioned solution works well to prevent permanently excessive supply, we recently identified that it might occasionally lead to temporary surplus. Although this surplus is securely held in the Collateral Account and cannot be accessed, it could potentially pose a tokenomics risk if exploited.
To address this, we have introduced a new solution: the Pre-Quarterly Reserved Supply Burn. This approach eliminates the issue of temporary surplus and ensures more effective control of the token supply. By doing so, it prevents oversupply and mitigates potential risks from misuse in the unlikely event of any exploit.
How Pre-Quarterly Reserved Supply Burn Works
- Estimation: At the beginning of each quarter, we estimate the total number of blocks to be created and the expected distribution of SIX tokens during the quarter.
- Burn: Based on these calculations, we burn an equivalent amount of SIX tokens from our reserves.
All burn transactions will be transparently announced in the Community Relations section of the SIX Network website.
Why Pre-Quarterly Reserved Supply Burn is Better
Proactive Supply Control
- Tokens are burned before the quarter begins, addressing and eliminating potential surpluses in advance.
- This approach eliminates temporary surplus risks, promoting a stable tokenomics framework.
Reduced Risks
- By burning tokens in advance, it removes any chance of temporary surplus being exploited, safeguarding the ecosystem.
With this proactive solution, the issue of temporary surplus is eliminated, and the supply is managed effectively to ensure the stability and security of the SIX ecosystem, while accurately reflecting the real state of tokenomics and token distribution within the ecosystem.
Immediate Implementation
The new solution will be immediately implemented in the SIX ecosystem starting December 6, 2025. This transaction covers the amount that will be generated in Q1 2025 and the supply generated from November 26 2024 to the end of this quarter plus a 30% buffer. The 30% buffer will apply only for the first attempt. The total burned amount is 1,237,757.66 SIX.
Below is the burn transaction we have executed:
This transaction will also be recorded in the Community Relations section for transparency.
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Note:
1. This announcement is intended for informational purposes only. Please conduct your own research before making any investment decisions related to cryptocurrencies or Token listings.
2. Cryptocurrency and digital Token involve high risk; investors may lose all investment money and should study information carefully and make investments according to their own risk profile.
