Buyback & Burn Q4 2020 Announcement

. 3 min read

The 2020, quarter 4 (Q4 2020) buyback and burn will officially occur on Sunday, December 20, 2020, at a randomly selected time.

What is Happening?

LocalCoinSwap will use 20% of the trade fees collected in this quarter to purchase LCS on the open market. All the LCS tokens purchased through this buyback will be subsequently burned. This buyback and burn will be the fifth time this process has taken place, and we look forward to giving back to our community members once again.

Where is it Happening?

This buyback will occur on the Hotbit exchange. Given the peer-to-peer (P2P) nature of LocalCoinSwap and the importance we place on both transparency and privacy, it is critical for the buyback to occur on a different exchange with a public order book. The buyback will be performed through the use of a market order, which further allows for a fair and equal opportunity event for any traders that choose to take part.

Buyback and Burn Details

The amount used to conduct the buyback will be 20% of all trade fees collected between September 20, 2020, and December 19, 2020. Following this process, a report will be released outlining the outcome of the buyback and burn. This report will include statistics regarding the number of tokens burnt to provide the community with the necessary information to clearly understand the effect this burn has had on the overall token supply and other related factors.

Please note that this won’t necessarily be reflected in the circulating supply on CoinMarketCap or other similar sites that list information about the LCS token as we have no control over how often these numbers will be updated.

Moving Forward

After a recent poll run in the LocalCoinSwap telegram community was run to gauge interest in modifying the schedule and how it will be conducted, we will be increasing the frequency of this event from quarterly to fortnightly as well as rotating it between both Hotbit and Uniswap. This buyback and burn will be used to catch up, and it will proceed with the full quarterly amount leaving a clean slate to then move to fortnightly burns. As the burn is occurring on Hotbit, it’s unlikely we will experience the same degree of slippage that occurred during the last quarterly burn on Uniswap, resulting in a significantly higher number of tokens likely being burnt.

The first fortnightly buyback and burn will be occurring on the 3rd of January 2021, signaling the start of the transition to fortnightly randomized burns. It will be taking place on Uniswap, and from there, the rotation will begin.

Thanks to Our Community

We are thankful to all those that shared their thoughts, feedback and voted in the poll. As always, we’ll be paying attention to the community’s input to adapt things as necessary. We’re excited that the revenue going to these burns has been increasing and resulted in needing to reassess how they are operated; it’s a good problem to have. If there is significant demand for change in the coming months, or other practical alternatives become apparent we’ll be sure to explore these with our community to ensure we are making the most of this process.

Platform development, user growth, and volume have all been steadily increasing since the launch of the platform and we’re excited about the future as there is so much more to come. We would like to thank you all for your continued support. We’re enthusiastic about this adjustment to the burns to better serve the token holders in the LocalCoinSwap community as we reach this next stage in the growth of the project.

We’d like to thank our entire community for their support, we look forward to sharing even more project updates and continued developments as we lead into the new year and beyond.

- The LocalCoinSwap Team