Announcing 22M CHR burn

As mentioned in the Chromia whitepaper, ChromaWay is responsible for development of Chromia in early years before it achieves sufficient decentralization. The idea behind this is that a startup-like company can efficiently allocate resources to marketing, core and ecosystem development, coordinate and balance things. ChromaWay is thus also responsible for management of financial resources, particularly tokens.

The Chromia whitepaper broadly defined token issuance schedule: up to 53% of all tokens might be issued 1 year after launch, up to 71% after second year and so on. But this defines the maximum amount. In 2019 we were focused on core software development, and thus ecosystem and promotion funds were largely unused. Based on this data, we created a target for 2020 which is significantly below the whitepaper limit.

However, in 2020 it appears that the crypto winter is over, crypto markets are growing, there's a lot of interest in crypto communities, etc. This creates a lot of opportunities for marketing and ecosystem growth, and we decided it would be wrong to miss these opportunities being guided by old data.

For these reasons, CHR token issuance schedule was sped up, more tokens were issued for ecosystem and promotion purposes, spent on marketing, etc. In particular, this allowed development of projects such as Chromia Vault, Originals / Marketplace, Spaces, Mines of Dalarnia, Chromunity, Impactoria (some of them are already deployed, some not even announced). Chromia also gained a lot of visibility in the community.

As a result, circulating supply grew to 346M CHR, in the sense that is reported by external sites. However, 57M out of that was held as a reserve for future use and did not actually enter circulation. in particular, 46M is currently held by project’s main treasury reserve wallet - 0x65e170e0cfcb1484c9c44905fa0a9209cfe889f7 and 11M CHR will be moved back within one week.

A September 2019 article clarifying the circulating supply defined the following limit:

"The maximum possible number of tokens in the circulation at the end of May 2020 would be 324 million tokens."

In order to bring the circulated supply amount under this limit we will burn 22M CHR tokens currently held in 0x65e170e0cfcb1484c9c44905fa0a9209cfe889f7. (Specifically we call function transferToChromia with argument 0x0 which will be recorded in events as Transfer to address 0x0.) That would result in a remaining circulating supply of 324M, as described in our September 2019 article

We now realize that our communications were not sufficiently timely and consistent, and we will prioritize this area in future. It is also worth noting that the circulating supply (and in fact even total issued supply) always remained under the hard limit defined in the whitepaper (530M CHR).

How is circulating supply calculated

For the sake of transparency, we release the official methodology:
Circulating supply is the total supply for CHR token, as seen on https://etherscan.io/token/0x915044526758533dfB918ecEb6e44bc21632060D
Currently it is 432.5M.

Minus the amount locked in presale investment contracts:

0x8286ef4168a0cfde1c022cfd059d721d6410d317
0x6fc05e81ca11f2642acffe071ca417be5c46de3d
0x300228d5ae3b5a07b71978f11c764f4d54d686f4
0x94ea4120a32eeadaf196cc85f1eb51b66499d03a
0x438795d51dd893a46536c187c4d6892bf2b9adf0
0x38ccbdebdda6df33707b98a784ed16cba524e54a
0xb39723c094719cf5a756c3f446c71dea389ca2d8
0x1ce73cf8084c5c7c157d7fbabc94affb6a280d4e
0x0671d417be914f3d46f3b0bd5e9905d9970af4e7
0x2145791bc5ea7f96dde6c79d8334ceecc350e87d
0x5f4326a197ebc1891a1a6cd8b1fdd79d29e87b4a
0x394C689944bBD370D11BA258651311349f981119

Which currently sums to 86.5M CHR

Thus we calculate, as of time of writing: 432.5M - 86.5M = 346M

In the future, as we create tokens on the Chromia mainnet that will also be added to the circulating supply, we will create a dashboard showing current supply and its components.If the total amount of tokens on all blockchains, they will co-exist on both ethereum and chromia mainnet, is going to be changed we will notify the community.

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