20 January 2022
With the recent BTZ total supply multiplication many Bitazzans have been wondering whether we have minted the additional tokens to increase the supply. Read more to find out:
First, let’s get to know the difference between a “split” and a “mint”.
Split Token means to multiply the tokens to boost the liquidity, where the token amount “increases” but the Fully Diluted Valuation stays the same. This is the principle we used to increase our BTZ total supply to 3 billion tokens and increase your BTZ by 10 times without affecting the Fully Diluted Valuation of 33.3 million USD.
Token splitting has been occurring more frequently in the crypto space, for example, PolkaDot recently multiplied its token supply 100 times in 2020, and DG (Decentral Games) has also increased its total token supply with a 1:1,000 token splitting to improve overall liquidity.
In contrast, Minting is the creation of new tokens from nothing and is often used to mint NFTs ( for example; artists convert their art from offline to online on the blockchain) or other tokens with “NO fixed total supply” and “constant value adds” as required by the project owner. An example of a token that can be minted is MANA from Decentraland, a virtual world platform that relies on the minting and burning of their MANA tokens to conduct activities on the platform. When tokens are minted, the Fully Diluted Valuation of the project does not necessarily remain the same.
Source:
https://news.bitcoin.com/polkadot-top-10-redenomination-shot-is-the-token-now-bigger-than-chainlink/
https://www.benzinga.com/markets/cryptocurrency/21/11/24061233/why-investors-are-unanimous-in-their-backing-of-token-splits
https://bitcoinexchangeguide.com/86-of-polkadot-stakeholders-voted-to-create-a-100x-dot-split-raised-44-4m-in-private-sale/
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