Render Network Approves New Mint/Burn Token Model – RNDR Price Surges
The RNDR token of Render Network, a blockchain-based GPU solution project, has surged by 80% over the past week following the approval of a new mint-and-burn token model.
On January 31, Render Network's governance forum approved a proposal for a model balancing the issuance (mint) and destruction (burn) of tokens. This mechanism is termed the "Burnt-and-Mint Equilibrium" (BME).
Want to understand the RNP process? Check out this super helpful TL:DR thread by one of @rendertoken's amazing mods @PraveenJandu! $RNDR 🔥 https://t.co/L6RqRRN206
— The Render Network (@rendernetwork) February 7, 2023
According to the proposal posted on GitHub, the new model will allow for the burning of RNDR tokens in exchange for credits similar to NFTs, referred to as "non-fungible work credits." These new tokens will then be distributed to nodes within the network.
With the BME mechanism, Render aims to transform RNDR into a deflationary asset while reducing the emissions typically associated with minting and burning tokens.
Founded in 2016 by OTOY's cloud rendering company Jules Urbach, Render Network provides distributed GPU-based rendering services, focusing on the cultural and entertainment niches.
In response to this potential mechanism, the price of RNDR has experienced a significant boost, increasing over 80% in the past week and an impressive 425% since the beginning of the year, jumping from $0.40 to $2.10 at present.
1D Chart of RNDR/USDT on Binance as of 11:00 AM, February 8, 2023
