The Velo project continues to evolve with a clear focus on long-term sustainability, investor confidence, and community empowerment. As part of this mission, the Velo Labs team has initiated a strategic token burn to enhance the overall value proposition of the VELO token. This move underscores a deep commitment to responsible tokenomics and transparent governance.
Starting March 16, 2022, Velo began an extensive token burn of 6 billion VELO tokens—equivalent to 20% of the total supply—executed gradually over six months at a rate of 1 billion tokens per month. This significant reduction in circulating supply is designed to increase scarcity, reinforce market confidence, and align incentives across stakeholders.
Why a Token Burn Matters
Token burns are a powerful mechanism in blockchain ecosystems. By permanently removing tokens from circulation, projects can:
- Reduce inflationary pressure
- Increase scarcity and potential value appreciation
- Demonstrate long-term commitment to holders
- Improve overall token utility and demand dynamics
For Velo, this burn reflects a proactive step toward strengthening its economic model while reinforcing trust among investors and community members.
Mike Kennedy, CEO of Velo, emphasized the strategic importance of this initiative:
“Undertaking a burn of this magnitude shows our commitment to the Velo community and our investors, while also moving us closer to our broader company goals, including strengthening our tokenomics. We want to ensure we are providing the best possible opportunities for the backers and supporters of the Velo mission.”
This statement highlights not just financial strategy but also a cultural commitment to transparency and shared growth.
Key Details of the Velo Token Burn
Below is a structured overview of the burn process:
🔥 Total Burn Amount
6 billion VELO tokens (20% of total supply)
📍 Burn Sources
Tokens were drawn equally from three reserve pools:
- Velo Development Reserve
- Future Reserve
- General Reserve
Each contributed one-third of the total burn volume, ensuring balanced impact across future development funds and operational reserves.
📅 Burn Timeline
- Start Date: March 16, 2022 (~15:00 UTC)
- Burn Rate: 1 billion VELO per month
- Duration: 6 months
👉 Discover how token burns can boost long-term investment value
Monthly Burn Schedule and Verification
Transparency is central to Velo’s approach. All burns were publicly verifiable via blockchain explorers for both Stellar and Binance Smart Chain (BSC), where VELO is issued as a wrapped asset.
Here is the complete burn schedule with transaction hashes for independent verification:
1st Burn – March 2022
Amount: 1,000,000,000 VELO
- Stellar TxHash:
172109651768016896 - BSC TxHash:
0x73c72f1630335c53b6d2c4735a2660800bffdc811b8420d68b09c7712090f3ae
2nd Burn – April 2022
Amount: 1,000,000,000 VELO
- Stellar TxHash:
174067396646674433 - BSC TxHash:
0xee4cb07383c49d2e3459871c8fc28dac7576fa2ba8a160fcc4e3e415ad281749
3rd Burn – May 2022
Amount: 1,000,000,000 VELO
- Stellar TxHash:
b2575eb15d79d6edb4addb95a9acf0063ba9771772a21bd4a37c8099ffd8a469 - BSC TxHash:
0x72438c68a5c1adc242f0b9332d4fe76a71e0360203a6d1ffe44d726ba4dfe310
4th & 5th Burns – July 2022
Total Amount: 2,000,000,000 VELO (combined)
- Stellar TxHash:
179713603602665472 - BSC TxHash (first):
0x3b40d819f4a041ea8d34eb2d2b3bc2961e0cb12d3a38b7ba8d26a19c3242192a(test transaction with 100 VELO) - BSC TxHash (main):
0x0ec0d4844d800f612940d013bd9f10f2b77c4ba771cf99c167d43f3c17540460
6th Burn – August 2022
Amount: 1,000,000,000 VELO
- Stellar TxHash:
7ff2f7ac3a7f3e68c6da81b678b953ced1c9dfce4d97ca5d678f3fefbc6cdef5 - BSC TxHash:
0xb731c05baf78eca6840a8279e7f872e8b543c79691db0068bbe6fd5cb4b8336e
All transactions are immutable and can be independently verified on Stellar Expert and BscScan.
How This Impacts VELO Holders
The reduction in total supply directly influences several key aspects of the token economy:
- Increased Scarcity: With fewer tokens in circulation, each remaining token represents a larger share of the ecosystem.
- Enhanced Value Proposition: Reduced supply, coupled with consistent demand, can drive upward price pressure over time.
- Stronger Investor Confidence: Transparent and scheduled burns signal maturity and responsible project management.
Moreover, by sourcing tokens evenly from multiple reserves, Velo ensures that no single fund is disproportionately affected, preserving future development capabilities.
👉 Learn how smart tokenomics drive sustainable crypto projects
Frequently Asked Questions (FAQ)
Q: What is a token burn?
A: A token burn is the permanent removal of tokens from circulation. This is typically done by sending tokens to an unrecoverable wallet address, effectively reducing the total supply.
Q: Why did Velo burn 6 billion tokens?
A: The burn strengthens VELO’s tokenomics by increasing scarcity, supporting long-term value appreciation, and demonstrating commitment to investors and the community.
Q: How does this affect the total supply of VELO?
A: The burn reduced the total supply by 2 billion tokens. Since VELO operates on a dual-chain model (Stellar and BSC), the burn was executed proportionally across both networks.
Q: Can I verify the burns myself?
A: Yes. All transactions are recorded on public blockchains. You can verify them using the provided transaction hashes on Stellar Expert or BscScan.
Q: Will there be more token burns in the future?
A: While no future burns have been officially announced, Velo remains committed to sustainable token management. Any future decisions will be communicated transparently.
Q: Does burning tokens guarantee price increases?
A: Not necessarily. While burns can positively influence price by reducing supply, market dynamics also depend on adoption, utility, and external factors.
Final Thoughts
The Velo token burn stands as a landmark event in the project’s journey—a bold step toward building a resilient, transparent, and community-driven ecosystem. By eliminating 20% of the total supply in a structured, verifiable manner, Velo has set a benchmark for accountability in decentralized finance.
As blockchain projects continue to mature, actions like these will become increasingly important in distinguishing genuine innovation from speculative ventures. For holders and observers alike, this burn serves as both a signal of strength and an invitation to participate in a more sustainable digital economy.
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The Velo Team