Our autonomous organization, NEO DAO, periodically repurchases NEO Credit (NRT) tokens from the open market for permanent eradication.
This "token burn" strategy operates in a fully transparent, public manner with all pertinent information such as the number of tokens burned and transaction value meticulously recorded on the DAO's blockchain.
Essentially, NEO DAO allocates a part of its quarterly profits to acquire NRT from the market, and then extinguishes them.
This strategy is geared towards reducing the supply of NRT in circulation, thereby increasing its scarcity and potentially driving up the value of the remaining NRT tokens.
For each NEO Burn event, the token burn rate stands at 20% of NEO DAO's quarterly profits. However, the actual percentage of tokens burned may fluctuate as it is contingent upon the DAO's profits from the previous quarter.
For instance, if NEO DAO made a profit of $1 million in the last quarter, it will burn $200,000 worth of NRT (which will be bought from the market). This will represent the token burn percentage for that quarter.
Marking a significant milestone, the inaugural NEO Burn event kicked off on June 1, 2023. During this event, 20% of the DAO's profits from the previous quarter was burned, adhering to the predetermined burn rate.