Over the past few weeks, you have heard some token related terms, such as token reduction, buyback, and burn. They each mean different things, but at times used interchangeably. Pundi X actually has all three — token burn, token buyback and token reduction.

This is a short article to explain what they are to set out the right expectation.

Token reduction

Effect: New Pundi X token with 1000 reduced supply.
Objective: Increase usage, exchange support, DeFi adoption.
Actions needed: It will be automatic or manual for users based on respective exchanges and wallets.
Timeline: Late March 2021 till late March 2022. Exact time TBA.

Pundi X will proceed token supply reduction after proposing a request for comment and conducting a community poll that supports the reduction.

There is no change in the value of the new tokens a user holds after token reduction compared to the total value of the old tokens. For example, if you are holding 1,000 NPXS, after the reduction your holdings will be 1 new Pundi X Token. The total value of the NPXS token remains the same, hence instead of, for example $0.002 per token the list price of the Pundi X new token will be reflected by the market at $2 per token while the total number of your new Pundi X token will reduce by 1,000 from your current holding.

From there, the price of the new token will move up or down according to the market. The company and exchanges will make sure that the token value of the new token follows Pundi X’s market capitalization accordingly.

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