Learn About Us Resources Wallet Get CNS ABOUT CENTRIC, UNCATEGORIZED The Burn Explained, Episode 3: Return of the Burn Ready for our final episode to learn more about the Burn, the Deflationary Supply, Protocol, Scarcity, and Consensus? Join us for part 3 of the Burn trilogy. Photo by Joshua Woroniecki on Unsplash Welcome, welcome! As promised, we’ve got a nice comfortable tree stump for you over here by the bonfire. Take a load off. Help yourself to your favorite beverage and join the jubilant Ewoks in song and dance. Glowah! This is a special day. You’ve reached the third and final installment of the Burn Trilogy. (We recommend you jump to Episode 1 and Episode 2 if you haven’t read them already). Your diligence in applying your attention and intelligence to today’s lesson will take you over the line and give you something worth celebrating. Let’s get right into it. Sorry to Burst Your Balloon Centric Rise (CNR) is a deflationary cryptocurrency. When you hear “deflate,” you might think of air getting let out of a balloon or tire. Image by M. H. from Pixabay While it might conjure colorful wind-sucking images, they aren’t the most useful for understanding deflation in a financial context. And it gets all the more confusing when we think of the “ballooning” nature of CNR (increasing in price). Inflate? Deflate? Huh? Exhale… The deflation of CNR has nothing to do with CNR tokens losing either air or value. It’s the total supply of CNR that’s deflating over time. Forget about slashed tires and limp balloons. When you hear deflation, think of a reducing or shrinking supply. It’s like we started with a fixed number of cookies in the cookie jar (one billion, to be exact). And every hour, we remove a few cookies. And set them on fire. (It breaks my snacky-snacky heart). The “deflation” (or reduction) of the CNR supply takes place, of course, via the burn mechanism of the Centric protocol. Every hour, as persnickety Peg works overtime to wrangle the Protocol into balance, she scoops up a batch of CNR (cookies) from the quarantine (jar), and torches ‘em to a crisp. Every time that happens, the supply of CNR gets smaller and smaller. At the time of this writing, the Protocol burns around 200,000 CNR every day. (That’s a lot of cookies!) Image by Antonio Cansino from Pixabay Waiting to Exhale First, let’s agree on a basic principle of economics. The more plentiful something is, the less people value it. Even if it’s something super valuable. Like oxygen. Here on planet earth, oxygen is so plentiful that we take it for granted. Unless we are practicing holding our breath, we can hardly imagine oxygen scarcity. Photo by Ike louie Natividad from Pexels There is just so much oxygen available—enough for everyone. Free, plentiful, and taken for granted. (Except by yoga teachers who go too far with the “now breeeeeeaaaaath” thing). Go ahead anyway, and take a deep breath. Relish that 100% free oxygen. Ain’t it great to live on Planet Earth? A Record Offer On the flip side, consider The Beatles Collection, a limited release box set containing fourteen vinyl record albums. Capitol Records released 3,000 individually numbered units of the American version of this boxed set in 1978. I don’t know how much the box set sold for back in 1978, but I can imagine they weren’t exactly giving them away. The Beatles were (and remain) incredibly popular. In a market where music lovers flocked to purchase anything the Beatles released, the limited supply only increased the demand. Oh, to be one of the lucky 3,000 people who bought the boxed set! Fast forward to today. Imagine you had one of those original editions. Do you think it would be worth more today than it sold for in 1978? No doubt! In fact, there’s an offer on eBay right now for $3,999. (Of course, an individual seller’s offer price doesn’t necessarily reflect the market value of an item). If Capitol had sold millions of these box sets, we can assume there would be more copies in circulation today. As a result, the average asking price would be lower. Enough with Beatlemania. Let’s turn back to Centric. As the burn decreases the total supply of CNR each hour, CNR becomes more scarce. The increased scarcity makes CNR more valuable to those who hold it, and more attractive to those considering it as an investment. This leads to another reason the burn is a good thing. Can’t We All Just Agree? The faster CNR burns, the faster we’ll get to “protocol consensus.” This is the point at which the market “agrees” on the value of CNR, and every unit of CNR is worth the full “face value” of its current protocol price. When we reach protocol consensus, CNS will have reached and stabilized at 1 US dollar. The “consensus” points to the agreement on the market price of Centric Cash, as expressed in the protocol. CNR’s value will reflect the “protocol value” (based on the current price block). Peg will be very pleased, as will all the holders of CNR around the world. The dwindling supply of CNR hurtles us toward protocol consensus. As the supply gets smaller, there is less CNR to “spread around.” The dwindling supply of CNR will meet the increasing market demand for CNR. As great as that Beatles box set might be, imagine having to offload a billion of them? Imagine hauling those around in the trunk of your car. That’s a lot of flea markets. Imagine constantly enduring comments like, “Oh no, here comes that Beatles guy again, trying to sell me his dusty records!” “Records? How do you even play those things?” Centric began with 1 Billion CNR tokens, and of that supply, over 86.5 million CNR tokens have already burned. As we mentioned at the outset, the protocol currently burns in the ballpark of 200,000 CNR per day. You can check the current 24 hour burn rate on the Centric Explorer. Look for the value listed under “Burned (24h)”. There are a couple of important implications of the daily burn. It’s high time we discuss them. Image by Comfreak from Pixabay We’ve spoken a lot about the burning. We’ve discussed the work of Peg and her insistence on enforcing the protocol with an iron fist. Are you appreciating why it’s all so important? If you still need some help connecting the dots, this will help: When investors celebrate CNR burn, it’s because every hour of every day moves us closer and closer to inevitable protocol consensus! To Centric investors, all that burning smells like money. The Path to Protocol Consensus Of course, while the burn is an incredibly important factor of Centric, it isn’t the only way we’ll reach protocol consensus. What else will bring us there? Wallets In June 2021, we surpassed 30,000 Centric Web Wallets. (This does not include the many investors holding Centric in external wallets). New wallets are created daily as investors discover the project and decide to stake their claim in the future Centric economy. Many of these new investors learn about the project from existing Centric investors who want to share the amazing opportunity with their friends, family, and colleagues. Others might learn about Centric from our social media outreach and marketing efforts. Partnerships Every new partnership we land introduces Centric to a whole new set of eyeballs. This adds to the wallets, and also adds to the demand for CNS on the exchanges. A surge in demand leads to an increase in the price of CNS. Every investor has different goals, different financial situations, and different entry and exit points. As prices of both CNS and CNR grow, some investors will decide to “offramp.” They’ll convert their CNR to CNS, and sell on the exchanges, allowing new investors to come in (and/or existing investors to accumulate). Emerging Use Cases for CNR & CNS New partnerships also increase demand as they lead to new “uses” for CNR and CNS—new ways to invest or spend CNR and CNS. All of this leads to an increase in the aggregate “valuing” of Centric tokens. New use cases, such as CENPAY, will offer additional utility (usefulness) for Centric, as businesses of all kinds will be able to accept CNR as a payment for goods and services. When you understand the “vision” of the Centric economy, and grasp all the parts working together, it is a beautiful kaleidoscope. Kaleidoscope derived from CNR token image If we were to leave the entire job of getting us to protocol consensus in the hands of Peg and the Protocol, they’d eventually get it done and dusted. It’s how the Protocol was designed. However, other efforts of the Centric team and community—increasing wallets, marketing, partnerships, use cases, utility—will get us there even quicker. Spreading the word among your friends, family, colleagues, and social media can help, too. You Made It! Photo by Joshua Newton on Unsplash Congratulations on passing initiation. You made it through this Epic Trilogy. You’ve walked across the scorching hot coals of all three episodes. You’ve completed the Hero’s Journey. You’ve faced robots. Counted apples and bananas. Crossed paths with a maniacal accountant named Peg. Suffered a flat tire. And shopped for high-priced Beatles records on eBay. Moreover, you’ve endured pop culture references, puns, wordplay, and other head-shakers. All without getting burned—and hopefully without any permanent scars. How will life be different for you moving forward? Consider…. The next time you check out the Centric Explorer… Or read a discussion about the burn on our Telegram… Or come across a post on social media celebrating the latest CNR-burn milestone… It will no longer seem like a foreign language. No, for you, the mystery is decoded. You can now raise your own convicted voice to the cheering chorus! If the Ewoks left you wanting more, play this triumphant tune from Ellie Goulding. “We gonna let it burn, burn, burn, burn…” Crank up the volume, and let it rip as you read through the rest of the post. Imagine yourself sitting in a darkened theatre, half-stunned after a mind-blowin finale, watching the credits roll. (Too dramatic?) What’s Next? If you haven’t read the Centric whitepaper—or if it’s been a while—give it a read. It comes alive for you in new ways! What will you do with your newly acquired superpower? As Uncle Ben counseled his nephew Peter Parker: “With great power comes great responsibility.” Photo by Clay Banks on Unsplash Now that you’ve “got the burn,” we invite you to welcome others to the journey. The next time you come across someone puzzling over the burn, share this Epic blog trilogy with them. Give the gift that keeps on burning! Our Ears Are Burning We’d love to hear about your experience of the Burn Trilogy. What did you learn? What did you find most helpful? Where would you still like further clarification? Continue the discussion on Telegram or Twitter (#burntrilogy). Image by Rudy and Peter Skitterians from Pixabay THE END. Learn more Getting Started Guide Learn how to join Centric and get up running in the Centric economy. Learn The Basics Learn the key concepts underpinning the Centric protocol. Whitepaper Explore detailed information about the Centric project. Learn Basics Roadmap Whitepaper Key Metrics Yield Calculator Guide Cenpay FAQ's About Us Centric Foundation News & Events Careers Blog Contact Us Resources Resource Portal Developer Hub Centric Swap Centric Explorer Wallet Support Socials Facebook Twitter YouTube Telegram Telegram Chat Instagram Discord Reddit LinkedIn Languages Only swap CNS to CNR using www.centricswap.com or the Centric Wallet. Beware of swapping through MetaMask. Centric Rise (CNR) Contract: 0xdCbA3fbd7BBc28abD18A472D28358089467A8a74 Centric Swap (CNS) Contract: 0xF6Cb4ad242BaB681EfFc5dE40f7c8FF921a12d63 © 2019-2021 Centric - All rights reserved. Privacy Policy Terms of Service