HONEY token burns have hit a new record, and the Hivemapper team has responded to community requests for more transparency when it comes to token buybacks.
What Is Hivemapper?
Hivemapper is a DePIN (Decentralized Physical Infrastructure Network) that rewards dashcam owners for collecting and uploading fresh street-level imagery. HONEY tokens, which are minted on the Solana blockchain, are automatically distributed to drivers based on their contributions.
Hivemapper has signed enterprise customers (like Lyft and Volkswagon, for example) who buy the street imagery for various use-cases. In order to download the imagery, HONEY tokens must be purchased off the market and burned to generate map credits.
Enterprise customers typically pay for these credits with fiat currency. Hivemapper then uses that revenue to buy the HONEY token off of the open market and burn it, reducing the circulating supply.
Lag Between Demand And Token Burn
Due to contract terms, enterprise customers tend to pay for mapping data on a quarterly basis, and it can take weeks for payments to go through. That being the case, there is often a lag between increased demand and the buying and burning of HONEY tokens.
Hivemapper only buys HONEY off the market when a payment is received from the customer. Therefore, buybacks follow cash payments, not real-time usage.
Increased Transparency
Hivemapper has said they are committed to providing better updates and more information on how to track buybacks. In their X post, they published a link to a Solana wallet address, which tracks the purchase and burning of some HONEY tokens.
Net Negative Emissions
On another note, in the the time period of Nov 17th to 23rd HONEY entered into deflationary territory for the first time ever as token burns exceeded emissions.
HONEY technically has a max supply of 10 billion tokens, but it may never reach that amount if burns continue to exceed emissions.
The current circulating supply of HONEY is about 6.5 billion.
Until next time...
If you learned something new from this article, be sure to check out my other posts on crypto and finance here on the Hive blockchain. You can also follow me on InLeo for more frequent updates.
Sources
Hivemapper X Post [1]
HONEY Weekly Burn Rate [2]
Posted Using INLEO